UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Allspring Funds Trust
(Exact name of registrant as specified in charter)
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: March 31
Registrant is making a filing for 8 of its series: Allspring Managed Account CoreBuilder Shares-Series EPI, Allspring Disciplined Small Cap Fund, Allspring Discovery Small Cap Growth Fund, Allspring Index Fund, Allspring Innovation Fund, Allspring Precious Metals Fund, Allspring Special Small Cap Value Fund and Allspring Utility and Telecommunications Fund.
Date of reporting period: September 30, 2024
ITEM 1. REPORT TO STOCKHOLDERS
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Innovation Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $60 | 1.15%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $433,902,487 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 17% |
| Total advisory fees paid | $1,563,277 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Tradeweb Markets, Inc., Class A | 3.6 |
| Globant SA | 3.5 |
| Trade Desk, Inc., Class A | 3.5 |
| Shopify, Inc., Class A | 3.5 |
| TransDigm Group, Inc. | 3.3 |
| Veeva Systems, Inc., Class A | 3.2 |
| MercadoLibre, Inc. | 3.2 |
| Old Dominion Freight Line, Inc. | 3.1 |
| CCC Intelligent Solutions Holdings, Inc. | 3.1 |
| Morningstar, Inc. | 3.1 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 44.8 |
| Industrials | 17.9 |
| Financials | 15.5 |
| Health care | 9.2 |
| Consumer discretionary | 6.0 |
| Communication services | 3.6 |
| Real estate | 3.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Nicholas Birk was added as a portfolio manager to the Fund and on May 31, 2024, Robert Gruendyke was added as a portfolio manager to the Fund. On August 9, 2024, the Fund’s name was changed from the Allspring Discovery Innovation Fund to the Allspring Innovation Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Innovation Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $64 | 1.22%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $433,902,487 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 17% |
| Total advisory fees paid | $1,563,277 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Tradeweb Markets, Inc., Class A | 3.6 |
| Globant SA | 3.5 |
| Trade Desk, Inc., Class A | 3.5 |
| Shopify, Inc., Class A | 3.5 |
| TransDigm Group, Inc. | 3.3 |
| Veeva Systems, Inc., Class A | 3.2 |
| MercadoLibre, Inc. | 3.2 |
| Old Dominion Freight Line, Inc. | 3.1 |
| CCC Intelligent Solutions Holdings, Inc. | 3.1 |
| Morningstar, Inc. | 3.1 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 44.8 |
| Industrials | 17.9 |
| Financials | 15.5 |
| Health care | 9.2 |
| Consumer discretionary | 6.0 |
| Communication services | 3.6 |
| Real estate | 3.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Nicholas Birk was added as a portfolio manager to the Fund and on May 31, 2024, Robert Gruendyke was added as a portfolio manager to the Fund. On August 9, 2024, the Fund’s name was changed from the Allspring Discovery Innovation Fund to the Allspring Innovation Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Innovation Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $102 | 1.97%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $433,902,487 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 17% |
| Total advisory fees paid | $1,563,277 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Tradeweb Markets, Inc., Class A | 3.6 |
| Globant SA | 3.5 |
| Trade Desk, Inc., Class A | 3.5 |
| Shopify, Inc., Class A | 3.5 |
| TransDigm Group, Inc. | 3.3 |
| Veeva Systems, Inc., Class A | 3.2 |
| MercadoLibre, Inc. | 3.2 |
| Old Dominion Freight Line, Inc. | 3.1 |
| CCC Intelligent Solutions Holdings, Inc. | 3.1 |
| Morningstar, Inc. | 3.1 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 44.8 |
| Industrials | 17.9 |
| Financials | 15.5 |
| Health care | 9.2 |
| Consumer discretionary | 6.0 |
| Communication services | 3.6 |
| Real estate | 3.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Nicholas Birk was added as a portfolio manager to the Fund and on May 31, 2024, Robert Gruendyke was added as a portfolio manager to the Fund. On August 9, 2024, the Fund’s name was changed from the Allspring Discovery Innovation Fund to the Allspring Innovation Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Innovation Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $47 | 0.90%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $433,902,487 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 17% |
| Total advisory fees paid | $1,563,277 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Tradeweb Markets, Inc., Class A | 3.6 |
| Globant SA | 3.5 |
| Trade Desk, Inc., Class A | 3.5 |
| Shopify, Inc., Class A | 3.5 |
| TransDigm Group, Inc. | 3.3 |
| Veeva Systems, Inc., Class A | 3.2 |
| MercadoLibre, Inc. | 3.2 |
| Old Dominion Freight Line, Inc. | 3.1 |
| CCC Intelligent Solutions Holdings, Inc. | 3.1 |
| Morningstar, Inc. | 3.1 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 44.8 |
| Industrials | 17.9 |
| Financials | 15.5 |
| Health care | 9.2 |
| Consumer discretionary | 6.0 |
| Communication services | 3.6 |
| Real estate | 3.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Nicholas Birk was added as a portfolio manager to the Fund and on May 31, 2024, Robert Gruendyke was added as a portfolio manager to the Fund. On August 9, 2024, the Fund’s name was changed from the Allspring Discovery Innovation Fund to the Allspring Innovation Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Managed Account CoreBuilder® Shares - Series EPI
This semi-annual shareholder report contains important information about Managed Account CoreBuilder® Shares - Series EPI for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-888-877-9275.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
Managed Account CoreBuilder® Shares - Series EPI | $0 | 0.00%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund. This commitment has an indefinite term. Without this commitment, the costs shown above would have been higher. See the prospectus for expenses excluded from this commitment.
| Total net assets | $3,443,319 |
| # of portfolio holdings | 62 |
| Portfolio turnover rate | 8% |
| Total advisory fees paid | $0 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Apple, Inc. | 8.5 |
| Microsoft Corp. | 8.4 |
| Alphabet, Inc., Class C | 5.7 |
| Meta Platforms, Inc., Class A | 4.5 |
| Broadcom, Inc. | 3.8 |
| Amazon.com, Inc. | 3.7 |
| Eli Lilly & Co. | 3.1 |
| JPMorgan Chase & Co. | 3.0 |
| UnitedHealth Group, Inc. | 3.0 |
| TotalEnergies SE ADR | 2.4 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 31.4 |
| Financials | 14.8 |
| Health care | 11.5 |
| Consumer discretionary | 11.3 |
| Communication services | 10.5 |
| Industrials | 10.1 |
| Energy | 4.8 |
| Consumer staples | 3.9 |
| Materials | 1.7 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Disciplined Small Cap Fund
This semi-annual shareholder report contains important information about Disciplined Small Cap Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $44 | 0.85%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $56,640,753 |
| # of portfolio holdings | 286 |
| Portfolio turnover rate | 29% |
| Total advisory fees paid | $41,590 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Modine Manufacturing Co. | 0.9 |
| Zeta Global Holdings Corp., Class A | 0.9 |
| Fabrinet | 0.8 |
| Corcept Therapeutics, Inc. | 0.8 |
| Lantheus Holdings, Inc. | 0.8 |
| Stride, Inc. | 0.8 |
| Primoris Services Corp. | 0.8 |
| M/I Homes, Inc. | 0.7 |
| Jackson Financial, Inc., Class A | 0.7 |
| Enova International, Inc. | 0.7 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Financials | 18.2 |
| Health care | 18.0 |
| Industrials | 17.1 |
| Information technology | 13.0 |
| Consumer discretionary | 10.4 |
| Real estate | 6.5 |
| Energy | 5.1 |
| Materials | 4.2 |
| Utilities | 3.0 |
| Consumer staples | 2.4 |
| Communication services | 2.1 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Disciplined Small Cap Fund
This semi-annual shareholder report contains important information about Disciplined Small Cap Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $47 | 0.92%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $56,640,753 |
| # of portfolio holdings | 286 |
| Portfolio turnover rate | 29% |
| Total advisory fees paid | $41,590 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Modine Manufacturing Co. | 0.9 |
| Zeta Global Holdings Corp., Class A | 0.9 |
| Fabrinet | 0.8 |
| Corcept Therapeutics, Inc. | 0.8 |
| Lantheus Holdings, Inc. | 0.8 |
| Stride, Inc. | 0.8 |
| Primoris Services Corp. | 0.8 |
| M/I Homes, Inc. | 0.7 |
| Jackson Financial, Inc., Class A | 0.7 |
| Enova International, Inc. | 0.7 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Financials | 18.2 |
| Health care | 18.0 |
| Industrials | 17.1 |
| Information technology | 13.0 |
| Consumer discretionary | 10.4 |
| Real estate | 6.5 |
| Energy | 5.1 |
| Materials | 4.2 |
| Utilities | 3.0 |
| Consumer staples | 2.4 |
| Communication services | 2.1 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Disciplined Small Cap Fund
This semi-annual shareholder report contains important information about Disciplined Small Cap Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class R6 | $26 | 0.50%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $56,640,753 |
| # of portfolio holdings | 286 |
| Portfolio turnover rate | 29% |
| Total advisory fees paid | $41,590 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Modine Manufacturing Co. | 0.9 |
| Zeta Global Holdings Corp., Class A | 0.9 |
| Fabrinet | 0.8 |
| Corcept Therapeutics, Inc. | 0.8 |
| Lantheus Holdings, Inc. | 0.8 |
| Stride, Inc. | 0.8 |
| Primoris Services Corp. | 0.8 |
| M/I Homes, Inc. | 0.7 |
| Jackson Financial, Inc., Class A | 0.7 |
| Enova International, Inc. | 0.7 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Financials | 18.2 |
| Health care | 18.0 |
| Industrials | 17.1 |
| Information technology | 13.0 |
| Consumer discretionary | 10.4 |
| Real estate | 6.5 |
| Energy | 5.1 |
| Materials | 4.2 |
| Utilities | 3.0 |
| Consumer staples | 2.4 |
| Communication services | 2.1 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Disciplined Small Cap Fund
This semi-annual shareholder report contains important information about Disciplined Small Cap Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $31 | 0.60%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $56,640,753 |
| # of portfolio holdings | 286 |
| Portfolio turnover rate | 29% |
| Total advisory fees paid | $41,590 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Modine Manufacturing Co. | 0.9 |
| Zeta Global Holdings Corp., Class A | 0.9 |
| Fabrinet | 0.8 |
| Corcept Therapeutics, Inc. | 0.8 |
| Lantheus Holdings, Inc. | 0.8 |
| Stride, Inc. | 0.8 |
| Primoris Services Corp. | 0.8 |
| M/I Homes, Inc. | 0.7 |
| Jackson Financial, Inc., Class A | 0.7 |
| Enova International, Inc. | 0.7 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Financials | 18.2 |
| Health care | 18.0 |
| Industrials | 17.1 |
| Information technology | 13.0 |
| Consumer discretionary | 10.4 |
| Real estate | 6.5 |
| Energy | 5.1 |
| Materials | 4.2 |
| Utilities | 3.0 |
| Consumer staples | 2.4 |
| Communication services | 2.1 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Discovery Small Cap Growth Fund
This semi-annual shareholder report contains important information about Discovery Small Cap Growth Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $60 | 1.15%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $93,499,601 |
| # of portfolio holdings | 81 |
| Portfolio turnover rate | 55% |
| Total advisory fees paid | $245,978 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Casella Waste Systems, Inc., Class A | 2.2 |
| Sterling Infrastructure, Inc. | 2.2 |
| RadNet, Inc. | 2.2 |
| Parsons Corp. | 2.1 |
| CyberArk Software Ltd. | 2.1 |
| Modine Manufacturing Co. | 2.1 |
| AAON, Inc. | 2.0 |
| Applied Industrial Technologies, Inc. | 2.0 |
| SPS Commerce, Inc. | 2.0 |
| Natera, Inc. | 2.0 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.3 |
| Health care | 23.0 |
| Information technology | 22.3 |
| Consumer discretionary | 8.4 |
| Financials | 8.3 |
| Consumer staples | 3.8 |
| Materials | 3.6 |
| Communication services | 1.6 |
| Energy | 0.7 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On May 31, 2024, Robert Gruendyke and David Nazaret were added as portfolio managers to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Discovery Small Cap Growth Fund
This semi-annual shareholder report contains important information about Discovery Small Cap Growth Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $63 | 1.22%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $93,499,601 |
| # of portfolio holdings | 81 |
| Portfolio turnover rate | 55% |
| Total advisory fees paid | $245,978 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Casella Waste Systems, Inc., Class A | 2.2 |
| Sterling Infrastructure, Inc. | 2.2 |
| RadNet, Inc. | 2.2 |
| Parsons Corp. | 2.1 |
| CyberArk Software Ltd. | 2.1 |
| Modine Manufacturing Co. | 2.1 |
| AAON, Inc. | 2.0 |
| Applied Industrial Technologies, Inc. | 2.0 |
| SPS Commerce, Inc. | 2.0 |
| Natera, Inc. | 2.0 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.3 |
| Health care | 23.0 |
| Information technology | 22.3 |
| Consumer discretionary | 8.4 |
| Financials | 8.3 |
| Consumer staples | 3.8 |
| Materials | 3.6 |
| Communication services | 1.6 |
| Energy | 0.7 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On May 31, 2024, Robert Gruendyke and David Nazaret were added as portfolio managers to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Discovery Small Cap Growth Fund
This semi-annual shareholder report contains important information about Discovery Small Cap Growth Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $102 | 1.97%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $93,499,601 |
| # of portfolio holdings | 81 |
| Portfolio turnover rate | 55% |
| Total advisory fees paid | $245,978 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Casella Waste Systems, Inc., Class A | 2.2 |
| Sterling Infrastructure, Inc. | 2.2 |
| RadNet, Inc. | 2.2 |
| Parsons Corp. | 2.1 |
| CyberArk Software Ltd. | 2.1 |
| Modine Manufacturing Co. | 2.1 |
| AAON, Inc. | 2.0 |
| Applied Industrial Technologies, Inc. | 2.0 |
| SPS Commerce, Inc. | 2.0 |
| Natera, Inc. | 2.0 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.3 |
| Health care | 23.0 |
| Information technology | 22.3 |
| Consumer discretionary | 8.4 |
| Financials | 8.3 |
| Consumer staples | 3.8 |
| Materials | 3.6 |
| Communication services | 1.6 |
| Energy | 0.7 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On May 31, 2024, Robert Gruendyke and David Nazaret were added as portfolio managers to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Discovery Small Cap Growth Fund
This semi-annual shareholder report contains important information about Discovery Small Cap Growth Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class R6 | $41 | 0.80%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $93,499,601 |
| # of portfolio holdings | 81 |
| Portfolio turnover rate | 55% |
| Total advisory fees paid | $245,978 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Casella Waste Systems, Inc., Class A | 2.2 |
| Sterling Infrastructure, Inc. | 2.2 |
| RadNet, Inc. | 2.2 |
| Parsons Corp. | 2.1 |
| CyberArk Software Ltd. | 2.1 |
| Modine Manufacturing Co. | 2.1 |
| AAON, Inc. | 2.0 |
| Applied Industrial Technologies, Inc. | 2.0 |
| SPS Commerce, Inc. | 2.0 |
| Natera, Inc. | 2.0 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.3 |
| Health care | 23.0 |
| Information technology | 22.3 |
| Consumer discretionary | 8.4 |
| Financials | 8.3 |
| Consumer staples | 3.8 |
| Materials | 3.6 |
| Communication services | 1.6 |
| Energy | 0.7 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On May 31, 2024, Robert Gruendyke and David Nazaret were added as portfolio managers to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Discovery Small Cap Growth Fund
This semi-annual shareholder report contains important information about Discovery Small Cap Growth Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $47 | 0.90%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $93,499,601 |
| # of portfolio holdings | 81 |
| Portfolio turnover rate | 55% |
| Total advisory fees paid | $245,978 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Casella Waste Systems, Inc., Class A | 2.2 |
| Sterling Infrastructure, Inc. | 2.2 |
| RadNet, Inc. | 2.2 |
| Parsons Corp. | 2.1 |
| CyberArk Software Ltd. | 2.1 |
| Modine Manufacturing Co. | 2.1 |
| AAON, Inc. | 2.0 |
| Applied Industrial Technologies, Inc. | 2.0 |
| SPS Commerce, Inc. | 2.0 |
| Natera, Inc. | 2.0 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.3 |
| Health care | 23.0 |
| Information technology | 22.3 |
| Consumer discretionary | 8.4 |
| Financials | 8.3 |
| Consumer staples | 3.8 |
| Materials | 3.6 |
| Communication services | 1.6 |
| Energy | 0.7 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On May 31, 2024, Robert Gruendyke and David Nazaret were added as portfolio managers to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Index Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $13 | 0.25%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $1,333,931,759 |
| # of portfolio holdings | 505 |
| Portfolio turnover rate | 2% |
| Total advisory fees paid | $31,153 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Apple, Inc. | 7.2 |
| Microsoft Corp. | 6.5 |
| NVIDIA Corp. | 6.1 |
| Amazon.com, Inc. | 3.5 |
| Meta Platforms, Inc., Class A | 2.5 |
| Alphabet, Inc., Class A | 2.0 |
| Berkshire Hathaway, Inc., Class B | 1.7 |
| Alphabet, Inc., Class C | 1.6 |
| Broadcom, Inc. | 1.6 |
| Tesla, Inc. | 1.5 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 31.7 |
| Financials | 12.9 |
| Health care | 11.6 |
| Consumer discretionary | 10.1 |
| Communication services | 8.9 |
| Industrials | 8.5 |
| Consumer staples | 5.9 |
| Energy | 3.3 |
| Utilities | 2.5 |
| Real estate | 2.3 |
| Materials | 2.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Index Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $23 | 0.44%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $1,333,931,759 |
| # of portfolio holdings | 505 |
| Portfolio turnover rate | 2% |
| Total advisory fees paid | $31,153 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Apple, Inc. | 7.2 |
| Microsoft Corp. | 6.5 |
| NVIDIA Corp. | 6.1 |
| Amazon.com, Inc. | 3.5 |
| Meta Platforms, Inc., Class A | 2.5 |
| Alphabet, Inc., Class A | 2.0 |
| Berkshire Hathaway, Inc., Class B | 1.7 |
| Alphabet, Inc., Class C | 1.6 |
| Broadcom, Inc. | 1.6 |
| Tesla, Inc. | 1.5 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 31.7 |
| Financials | 12.9 |
| Health care | 11.6 |
| Consumer discretionary | 10.1 |
| Communication services | 8.9 |
| Industrials | 8.5 |
| Consumer staples | 5.9 |
| Energy | 3.3 |
| Utilities | 2.5 |
| Real estate | 2.3 |
| Materials | 2.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Index Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $63 | 1.19%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $1,333,931,759 |
| # of portfolio holdings | 505 |
| Portfolio turnover rate | 2% |
| Total advisory fees paid | $31,153 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Apple, Inc. | 7.2 |
| Microsoft Corp. | 6.5 |
| NVIDIA Corp. | 6.1 |
| Amazon.com, Inc. | 3.5 |
| Meta Platforms, Inc., Class A | 2.5 |
| Alphabet, Inc., Class A | 2.0 |
| Berkshire Hathaway, Inc., Class B | 1.7 |
| Alphabet, Inc., Class C | 1.6 |
| Broadcom, Inc. | 1.6 |
| Tesla, Inc. | 1.5 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Information technology | 31.7 |
| Financials | 12.9 |
| Health care | 11.6 |
| Consumer discretionary | 10.1 |
| Communication services | 8.9 |
| Industrials | 8.5 |
| Consumer staples | 5.9 |
| Energy | 3.3 |
| Utilities | 2.5 |
| Real estate | 2.3 |
| Materials | 2.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Precious Metals Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the consolidated costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | CONSOLIDATED COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $54 | 0.95%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Consolidated Total net assets | $370,817,524 |
| Consolidated # of portfolio holdings | 49 |
| Consolidated Portfolio turnover rate | 8% |
| Consolidated Total advisory fees paid | $973,873 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Agnico Eagle Mines Ltd. | 7.1 |
| Newmont Corp. | 6.4 |
| Kinross Gold Corp. Toronto Stock Exchange | 5.9 |
| Lundin Gold, Inc. | 5.8 |
| Gold Bullion | 5.5 |
| Alamos Gold, Inc., Class A | 5.4 |
| Wheaton Precious Metals Corp. | 5.3 |
| Barrick Gold Corp. | 4.6 |
| Endeavour Mining PLC | 3.7 |
| Northern Star Resources Ltd. | 3.6 |
COUNTRY ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Canada | 69.7 |
| United States | 17.3 |
| United Kingdom | 5.7 |
| Australia | 4.0 |
| South Africa | 3.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Precious Metals Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the consolidated costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | CONSOLIDATED COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $62 | 1.09%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Consolidated Total net assets | $370,817,524 |
| Consolidated # of portfolio holdings | 49 |
| Consolidated Portfolio turnover rate | 8% |
| Consolidated Total advisory fees paid | $973,873 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Agnico Eagle Mines Ltd. | 7.1 |
| Newmont Corp. | 6.4 |
| Kinross Gold Corp. Toronto Stock Exchange | 5.9 |
| Lundin Gold, Inc. | 5.8 |
| Gold Bullion | 5.5 |
| Alamos Gold, Inc., Class A | 5.4 |
| Wheaton Precious Metals Corp. | 5.3 |
| Barrick Gold Corp. | 4.6 |
| Endeavour Mining PLC | 3.7 |
| Northern Star Resources Ltd. | 3.6 |
COUNTRY ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Canada | 69.7 |
| United States | 17.3 |
| United Kingdom | 5.7 |
| Australia | 4.0 |
| South Africa | 3.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Precious Metals Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the consolidated costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | CONSOLIDATED COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $105 | 1.84%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Consolidated Total net assets | $370,817,524 |
| Consolidated # of portfolio holdings | 49 |
| Consolidated Portfolio turnover rate | 8% |
| Consolidated Total advisory fees paid | $973,873 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Agnico Eagle Mines Ltd. | 7.1 |
| Newmont Corp. | 6.4 |
| Kinross Gold Corp. Toronto Stock Exchange | 5.9 |
| Lundin Gold, Inc. | 5.8 |
| Gold Bullion | 5.5 |
| Alamos Gold, Inc., Class A | 5.4 |
| Wheaton Precious Metals Corp. | 5.3 |
| Barrick Gold Corp. | 4.6 |
| Endeavour Mining PLC | 3.7 |
| Northern Star Resources Ltd. | 3.6 |
COUNTRY ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Canada | 69.7 |
| United States | 17.3 |
| United Kingdom | 5.7 |
| Australia | 4.0 |
| South Africa | 3.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about Precious Metals Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
What were the Fund costs for the past 6 months?
The table explains the consolidated costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | CONSOLIDATED COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $45 | 0.79%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Consolidated Total net assets | $370,817,524 |
| Consolidated # of portfolio holdings | 49 |
| Consolidated Portfolio turnover rate | 8% |
| Consolidated Total advisory fees paid | $973,873 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| Agnico Eagle Mines Ltd. | 7.1 |
| Newmont Corp. | 6.4 |
| Kinross Gold Corp. Toronto Stock Exchange | 5.9 |
| Lundin Gold, Inc. | 5.8 |
| Gold Bullion | 5.5 |
| Alamos Gold, Inc., Class A | 5.4 |
| Wheaton Precious Metals Corp. | 5.3 |
| Barrick Gold Corp. | 4.6 |
| Endeavour Mining PLC | 3.7 |
| Northern Star Resources Ltd. | 3.6 |
COUNTRY ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Canada | 69.7 |
| United States | 17.3 |
| United Kingdom | 5.7 |
| Australia | 4.0 |
| South Africa | 3.3 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Special Small Cap Value Fund
This semi-annual shareholder report contains important information about Special Small Cap Value Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222. Administrator Class is closed to new investors and additional investments from existing shareholders.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $58 | 1.16%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $5,482,303,354 |
| # of portfolio holdings | 137 |
| Portfolio turnover rate | 10% |
| Total advisory fees paid | $21,376,435 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| J&J Snack Foods Corp. | 3.5 |
| Mueller Industries, Inc. | 3.3 |
| Innospec, Inc. | 3.3 |
| Franklin Electric Co., Inc. | 3.2 |
| Avient Corp. | 3.0 |
| Eagle Materials, Inc. | 3.0 |
| UMB Financial Corp. | 3.0 |
| Spectrum Brands Holdings, Inc. | 2.5 |
| Silgan Holdings, Inc. | 2.0 |
| Stewart Information Services Corp. | 1.8 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.2 |
| Financials | 21.8 |
| Materials | 18.0 |
| Consumer staples | 11.1 |
| Energy | 5.3 |
| Information technology | 5.2 |
| Health care | 5.1 |
| Consumer discretionary | 3.1 |
| Real estate | 1.3 |
| Communication services | 0.5 |
| Utilities | 0.4 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Special Small Cap Value Fund
This semi-annual shareholder report contains important information about Special Small Cap Value Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222. Class A is closed to new investors and additional investments from existing shareholders.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $62 | 1.24%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $5,482,303,354 |
| # of portfolio holdings | 137 |
| Portfolio turnover rate | 10% |
| Total advisory fees paid | $21,376,435 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| J&J Snack Foods Corp. | 3.5 |
| Mueller Industries, Inc. | 3.3 |
| Innospec, Inc. | 3.3 |
| Franklin Electric Co., Inc. | 3.2 |
| Avient Corp. | 3.0 |
| Eagle Materials, Inc. | 3.0 |
| UMB Financial Corp. | 3.0 |
| Spectrum Brands Holdings, Inc. | 2.5 |
| Silgan Holdings, Inc. | 2.0 |
| Stewart Information Services Corp. | 1.8 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.2 |
| Financials | 21.8 |
| Materials | 18.0 |
| Consumer staples | 11.1 |
| Energy | 5.3 |
| Information technology | 5.2 |
| Health care | 5.1 |
| Consumer discretionary | 3.1 |
| Real estate | 1.3 |
| Communication services | 0.5 |
| Utilities | 0.4 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Special Small Cap Value Fund
This semi-annual shareholder report contains important information about Special Small Cap Value Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222. Class C is closed to new investors and additional investments from existing shareholders.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $99 | 1.98%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $5,482,303,354 |
| # of portfolio holdings | 137 |
| Portfolio turnover rate | 10% |
| Total advisory fees paid | $21,376,435 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| J&J Snack Foods Corp. | 3.5 |
| Mueller Industries, Inc. | 3.3 |
| Innospec, Inc. | 3.3 |
| Franklin Electric Co., Inc. | 3.2 |
| Avient Corp. | 3.0 |
| Eagle Materials, Inc. | 3.0 |
| UMB Financial Corp. | 3.0 |
| Spectrum Brands Holdings, Inc. | 2.5 |
| Silgan Holdings, Inc. | 2.0 |
| Stewart Information Services Corp. | 1.8 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.2 |
| Financials | 21.8 |
| Materials | 18.0 |
| Consumer staples | 11.1 |
| Energy | 5.3 |
| Information technology | 5.2 |
| Health care | 5.1 |
| Consumer discretionary | 3.1 |
| Real estate | 1.3 |
| Communication services | 0.5 |
| Utilities | 0.4 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Special Small Cap Value Fund
This semi-annual shareholder report contains important information about Special Small Cap Value Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222. Class R6 is closed to new investors and additional investments from existing shareholders.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class R6 | $41 | 0.82%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $5,482,303,354 |
| # of portfolio holdings | 137 |
| Portfolio turnover rate | 10% |
| Total advisory fees paid | $21,376,435 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| J&J Snack Foods Corp. | 3.5 |
| Mueller Industries, Inc. | 3.3 |
| Innospec, Inc. | 3.3 |
| Franklin Electric Co., Inc. | 3.2 |
| Avient Corp. | 3.0 |
| Eagle Materials, Inc. | 3.0 |
| UMB Financial Corp. | 3.0 |
| Spectrum Brands Holdings, Inc. | 2.5 |
| Silgan Holdings, Inc. | 2.0 |
| Stewart Information Services Corp. | 1.8 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.2 |
| Financials | 21.8 |
| Materials | 18.0 |
| Consumer staples | 11.1 |
| Energy | 5.3 |
| Information technology | 5.2 |
| Health care | 5.1 |
| Consumer discretionary | 3.1 |
| Real estate | 1.3 |
| Communication services | 0.5 |
| Utilities | 0.4 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Special Small Cap Value Fund
This semi-annual shareholder report contains important information about Special Small Cap Value Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222. Institutional Class is closed to new investors and additional investments from existing shareholders.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $46 | 0.92%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $5,482,303,354 |
| # of portfolio holdings | 137 |
| Portfolio turnover rate | 10% |
| Total advisory fees paid | $21,376,435 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| J&J Snack Foods Corp. | 3.5 |
| Mueller Industries, Inc. | 3.3 |
| Innospec, Inc. | 3.3 |
| Franklin Electric Co., Inc. | 3.2 |
| Avient Corp. | 3.0 |
| Eagle Materials, Inc. | 3.0 |
| UMB Financial Corp. | 3.0 |
| Spectrum Brands Holdings, Inc. | 2.5 |
| Silgan Holdings, Inc. | 2.0 |
| Stewart Information Services Corp. | 1.8 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Industrials | 28.2 |
| Financials | 21.8 |
| Materials | 18.0 |
| Consumer staples | 11.1 |
| Energy | 5.3 |
| Information technology | 5.2 |
| Health care | 5.1 |
| Consumer discretionary | 3.1 |
| Real estate | 1.3 |
| Communication services | 0.5 |
| Utilities | 0.4 |
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Utility and Telecommunications Fund
This semi-annual shareholder report contains important information about Utility and Telecommunications Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Administrator Class | $51 | 0.92%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $356,908,510 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 4% |
| Total advisory fees paid | $856,808 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| NextEra Energy, Inc. | 12.5 |
| Constellation Energy Corp. | 6.1 |
| Southern Co. | 6.0 |
| Sempra | 4.4 |
| American Electric Power Co., Inc. | 4.4 |
| Duke Energy Corp. | 4.3 |
| DTE Energy Co. | 3.9 |
| Atmos Energy Corp. | 3.4 |
| CMS Energy Corp. | 3.3 |
| Public Service Enterprise Group, Inc. | 3.3 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Utilities | 80.6 |
| Communication services | 5.3 |
| Health care | 3.0 |
| Real estate | 2.9 |
| Information technology | 2.9 |
| Financials | 2.7 |
| Consumer discretionary | 1.6 |
| Consumer staples | 1.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Andy Smith was added as a portfolio manager to the Fund and as of September 30, 2024, Jack Spudich was no longer a portfolio manager to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Utility and Telecommunications Fund
This semi-annual shareholder report contains important information about Utility and Telecommunications Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class A | $57 | 1.04%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $356,908,510 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 4% |
| Total advisory fees paid | $856,808 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| NextEra Energy, Inc. | 12.5 |
| Constellation Energy Corp. | 6.1 |
| Southern Co. | 6.0 |
| Sempra | 4.4 |
| American Electric Power Co., Inc. | 4.4 |
| Duke Energy Corp. | 4.3 |
| DTE Energy Co. | 3.9 |
| Atmos Energy Corp. | 3.4 |
| CMS Energy Corp. | 3.3 |
| Public Service Enterprise Group, Inc. | 3.3 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Utilities | 80.6 |
| Communication services | 5.3 |
| Health care | 3.0 |
| Real estate | 2.9 |
| Information technology | 2.9 |
| Financials | 2.7 |
| Consumer discretionary | 1.6 |
| Consumer staples | 1.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Andy Smith was added as a portfolio manager to the Fund and as of September 30, 2024, Jack Spudich was no longer a portfolio manager to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Utility and Telecommunications Fund
This semi-annual shareholder report contains important information about Utility and Telecommunications Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Class C | $98 | 1.79%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $356,908,510 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 4% |
| Total advisory fees paid | $856,808 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| NextEra Energy, Inc. | 12.5 |
| Constellation Energy Corp. | 6.1 |
| Southern Co. | 6.0 |
| Sempra | 4.4 |
| American Electric Power Co., Inc. | 4.4 |
| Duke Energy Corp. | 4.3 |
| DTE Energy Co. | 3.9 |
| Atmos Energy Corp. | 3.4 |
| CMS Energy Corp. | 3.3 |
| Public Service Enterprise Group, Inc. | 3.3 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Utilities | 80.6 |
| Communication services | 5.3 |
| Health care | 3.0 |
| Real estate | 2.9 |
| Information technology | 2.9 |
| Financials | 2.7 |
| Consumer discretionary | 1.6 |
| Consumer staples | 1.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Andy Smith was added as a portfolio manager to the Fund and as of September 30, 2024, Jack Spudich was no longer a portfolio manager to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
Semi-Annual Shareholder Report
Utility and Telecommunications Fund
This semi-annual shareholder report contains important information about Utility and Telecommunications Fund for the period of April 1, 2024 to September 30, 2024. You can find additional information about the Fund at allspringglobal.com. You can also request this information by contacting us at 1-800-222-8222.
This report describes changes to the Fund that occurred either during or after the reporting period.
What were the Fund costs for the past 6 months?
The table explains the costs you would have paid within the reporting period based on a hypothetical $10,000 investment.
| CLASS NAME | COSTS OF A $10,000 INVESTMENT | COSTS PAID AS A % OF A $10,000 INVESTMENT |
|---|
| Institutional Class | $40 | 0.72%Footnote Reference1 |
| Footnote | Description |
Footnote1 | Annualized. |
The manager has contractually committed to waive fees and/or reimburse certain expenses to the extent necessary to cap the Fund's total annual fund operating expense ratio at a specific amount. Without this cap, the costs shown above may have been higher. Please see the prospectus for the amount and the expiration date of the 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.
| Total net assets | $356,908,510 |
| # of portfolio holdings | 34 |
| Portfolio turnover rate | 4% |
| Total advisory fees paid | $856,808 |
What did the Fund invest in?
(Based on long-term investments)
TOP TEN HOLDINGS (% OF NET ASSETS)
| NextEra Energy, Inc. | 12.5 |
| Constellation Energy Corp. | 6.1 |
| Southern Co. | 6.0 |
| Sempra | 4.4 |
| American Electric Power Co., Inc. | 4.4 |
| Duke Energy Corp. | 4.3 |
| DTE Energy Co. | 3.9 |
| Atmos Energy Corp. | 3.4 |
| CMS Energy Corp. | 3.3 |
| Public Service Enterprise Group, Inc. | 3.3 |
SECTOR ALLOCATION (% OF LONG-TERM INVESTMENTS)
| Utilities | 80.6 |
| Communication services | 5.3 |
| Health care | 3.0 |
| Real estate | 2.9 |
| Information technology | 2.9 |
| Financials | 2.7 |
| Consumer discretionary | 1.6 |
| Consumer staples | 1.0 |
This is a summary of certain changes and planned changes to the Fund since April 1, 2024.
On January 24, 2024, Andy Smith was added as a portfolio manager to the Fund and as of September 30, 2024, Jack Spudich was no longer a portfolio manager to the Fund.
You can find additional information on the Fund's website at allspringglobal.com, including its:
- Prospectus - Financial Information - Fund holdings - Proxy voting information
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
(a) The registrant’s Schedule of Investments is included as part of the Financial Statements filed under Item 7(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
(a) The registrant’s Financial Statements are attached herewith.
(b) The registrant’s Financial Highlights are included as part of the Financial Statements filed under Item 7(a) of this Form.
Allspring Discovery Small Cap Growth Fund
Long Form Financial Statements
Semi-Annual Report
Allspring Discovery Small Cap Growth Fund | 1
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
Communication services: 1.54% | | | | | | |
| | | | | | |
Liberty Media Corp.-Liberty Live Class C† | | | | | | |
Consumer discretionary: 8.33% | | | | | | |
Automobile components: 2.06% | | | | | | |
Modine Manufacturing Co.† | | | | | | |
Diversified consumer services: 1.43% | | | | | | |
Bright Horizons Family Solutions, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
Hotels, restaurants & leisure: 2.46% | | | | | | |
Dutch Bros, Inc. Class A† | | | | | | |
Sweetgreen, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
Household durables: 1.48% | | | | | | |
Taylor Morrison Home Corp. Class A† | | | | | | |
| | | | | | |
Boot Barn Holdings, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Personal care products: 2.52% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Energy equipment & services: 0.66% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Hamilton Lane, Inc. Class A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Financial services: 1.56% | | | | | | |
Shift4 Payments, Inc. Class A† | | | | | | |
The accompanying notes are an integral part of these financial statements.
2 | Allspring Discovery Small Cap Growth Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Skyward Specialty Insurance Group, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
ARS Pharmaceuticals, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
Halozyme Therapeutics, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Soleno Therapeutics, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Health care equipment & supplies: 6.51% | | | | | | |
| | | | | | |
Inspire Medical Systems, Inc.† | | | | | | |
iRhythm Technologies, Inc.† | | | | | | |
| | | | | | |
PROCEPT BioRobotics Corp.† | | | | | | |
| | | | | | |
| | | | | | |
Health care providers & services: 6.62% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Corcept Therapeutics, Inc.† | | | | | | |
Ligand Pharmaceuticals, Inc.† | | | | | | |
Tarsus Pharmaceuticals, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
Aerospace & defense: 1.33% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Commercial services & supplies: 5.78% | | | | | | |
ACV Auctions, Inc. Class A† | | | | | | |
Casella Waste Systems, Inc. Class A† | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 3
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Commercial services & supplies(continued) | | | | | | |
CECO Environmental Corp.† | | | | | | |
| | | | | | |
| | | | | | |
Construction & engineering: 5.37% | | | | | | |
Comfort Systems USA, Inc. | | | | | | |
Construction Partners, Inc. Class A† | | | | | | |
Sterling Infrastructure, Inc.† | | | | | | |
| | | | | | |
Electrical equipment: 0.90% | | | | | | |
American Superconductor Corp.† | | | | | | |
Ground transportation: 1.42% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Marine transportation: 1.30% | | | | | | |
| | | | | | |
Professional services: 3.72% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Trading companies & distributors: 3.72% | | | | | | |
Applied Industrial Technologies, Inc. | | | | | | |
SiteOne Landscape Supply, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
Information technology: 22.18% | | | | | | |
Electronic equipment, instruments & components: 4.21% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Semiconductors & semiconductor equipment: 3.23% | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Discovery Small Cap Growth Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Semiconductors & semiconductor equipment(continued) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
CCC Intelligent Solutions Holdings, Inc.† | | | | | | |
Clearwater Analytics Holdings, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
Descartes Systems Group, Inc.† | | | | | | |
| | | | | | |
Varonis Systems, Inc. Class B† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Carpenter Technology Corp. | | | | | | |
| | | | | | |
Total common stocks (Cost $69,542,685) | | | | | | |
| | | | | |
Short-term investments: 0.63% | | | | | | |
Investment companies: 0.63% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $591,102) | | | | | | |
Total investments in securities (Cost $70,133,787) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Non-income-earning security |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 5
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
6 | Allspring Discovery Small Cap Growth Fund
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $69,542,685) | |
Investments in affiliated securities, at value (cost $591,102) | |
Foreign currency, at value (cost $11,360) | |
Receivable for investments sold | |
Receivable for Fund shares sold | |
| |
Prepaid expenses and other assets | |
| |
| |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
| |
Shareholder servicing fee payable | |
Administration fees payable | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 7
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
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Dividends (net of foreign withholdings taxes of $1,138) | |
Income from affiliated securities | |
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Shareholder servicing fees | |
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Custody and accounting fees | |
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Shareholder report expenses | |
Trustees’ fees and expenses | |
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Less: Fee waivers and/or expense reimbursements | |
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Realized and unrealized gains (losses) on investments | |
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Foreign currency and foreign currency translations | |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
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Foreign currency and foreign currency translations | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Discovery Small Cap Growth Fund
Statement of changes in net assets
Statement of changes in net assets
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Six months ended
September 30, 2024 (unaudited) | |
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Net realized gains (losses) on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
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Payment for shares redeemed | | | | |
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Net decrease in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 9
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Discovery Small Cap Growth Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| During the year ended March 31, 2021, the Fund received a payment from an affiliate which had an impact of 0.09% on the total return. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 11
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | |
Total from investment operations | | | | | |
Distributions to shareholders from | | | | | |
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Net asset value, end of period | | | | | |
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Ratios to average net assets (annualized) | | | | | |
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Net assets, end of period (000s omitted) | | | | | |
| For the period from May 29, 2020 (commencement of class operations) to March 31, 2021 |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Discovery Small Cap Growth Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| During the year ended March 31, 2023, the Fund received payments from a service provider which had a 0.18% impact on the total return. |
| During the year ended March 31, 2021, the Fund received a payment from an affiliate which had an impact of 0.89% on the total return. |
The accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth Fund | 13
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Discovery Small Cap Growth Fund
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Discovery Small Cap Growth Fund (the “Fund”) which is a diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures implemented by Allspring Funds Management are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On September 30, 2024, such fair value pricing was not used in pricing foreign securities.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Allspring Discovery Small Cap Growth Fund | 15
Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $70,835,863 and the unrealized gains (losses) consisted of:
As of March 31, 2024, the Fund had capital loss carryforwards which consisted of $7,153,331 in short-term capital losses and $18,124,552 in long-term capital losses.
As of March 31, 2024, the Fund had a qualified late-year ordinary loss of $140,385 which was recognized on the first day of the current fiscal year.
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
16 | Allspring Discovery Small Cap Growth Fund
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
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Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As
Allspring Discovery Small Cap Growth Fund | 17
Notes to financial statements (unaudited)
compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
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Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $201 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $48,913,782 and $49,049,356, respectively.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of
18 | Allspring Discovery Small Cap Growth Fund
Notes to financial statements (unaudited)
the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
As of the end of the period, the Fund concentrated its portfolio of investments in the industrials sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
Allspring Discovery Small Cap Growth Fund | 19
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
20 | Allspring Discovery Small Cap Growth Fund
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
Allspring Discovery Small Cap Growth Fund | 21
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Discovery Small Cap Growth Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the portfolio managers responsible for the day-to-day portfolio management of the Fund would be changing during the Summer of 2024, and the Board considered the revised portfolio management team that would be taking over portfolio management responsibilities. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
22 | Allspring Discovery Small Cap Growth Fund
Other information (unaudited)
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was lower than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than or in range of the investment performance of its benchmark index, the Russell 2000® Growth Index, for the five- and ten-year periods under review, but lower for the one- and three-year periods under review.
The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance. The Board also took note of the Fund’s outperformance relative to the Universe and benchmark over the five-year period under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or equal to the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for each share class.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Allspring Discovery Small Cap Growth Fund | 23
Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
24 | Allspring Discovery Small Cap Growth Fund
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS4308 09-24
Allspring Precious Metals Fund
Long Form Financial Statements
Semi-Annual Report
Allspring Precious Metals Fund | 1
Consolidated portfolio of investments—September 30, 2024 (unaudited)
Consolidated portfolio of investments
| | | | | |
| | | | | | |
| | | | | | |
Evolution Mining Ltd. (Materials, Metals & mining) | | | | | | |
Northern Star Resources Ltd. (Materials, Metals & mining) | | | | | | |
| | | | | | |
| | | | | | |
Agnico Eagle Mines Ltd. (Materials, Metals & mining) | | | | | | |
Agnico Eagle Mines Ltd.-Legend Shares (Materials, Metals & mining)† | | | | | | |
Agnico Eagle Mines Ltd.-U.S. Exchange Traded Shares (Materials, Metals & mining) | | | | | | |
Alamos Gold, Inc. Class A (Materials, Metals & mining) | | | | | | |
Artemis Gold, Inc. (Materials, Metals & mining)† | | | | | | |
Ascot Resources Ltd. (Acquired 7-16-2024, cost $440,348) (Materials, Metals & mining)♦†˃ | | | | | | |
B2Gold Corp. (Materials, Metals & mining) | | | | | | |
Barrick Gold Corp. (Materials, Metals & mining) | | | | | | |
Calibre Mining Corp. (Materials, Metals & mining)† | | | | | | |
Centerra Gold, Inc. (Materials, Metals & mining) | | | | | | |
Centerra Gold, Inc.-Legend Shares (Materials, Metals & mining)† | | | | | | |
Dundee Precious Metals, Inc. (Materials, Metals & mining) | | | | | | |
Eldorado Gold Corp. (Materials, Metals & mining)† | | | | | | |
Franco-Nevada Corp.-Legend Shares (Materials, Metals & mining)144A† | | | | | | |
G Mining Ventures Corp. (Materials, Metals & mining)† | | | | | | |
Greenheart Gold, Inc. (Materials, Metals & mining)† | | | | | | |
IAMGOLD Corp. (Materials, Metals & mining)† | | | | | | |
Kinross Gold Corp. Toronto Stock Exchange (Materials, Metals & mining) | | | | | | |
Lundin Gold, Inc. (Materials, Metals & mining) | | | | | | |
MAG Silver Corp. (Materials, Metals & mining)† | | | | | | |
MAG Silver Corp.-Legend Shares (Materials, Metals & mining)† | | | | | | |
New Gold, Inc. (Materials, Metals & mining)† | | | | | | |
OceanaGold Corp. (Materials, Metals & mining) | | | | | | |
Orla Mining Ltd. (Materials, Metals & mining)† | | | | | | |
Osisko Gold Royalties Ltd. (Materials, Metals & mining) | | | | | | |
Osisko Mining, Inc. (Materials, Metals & mining)† | | | | | | |
Pan American Silver Corp. (Materials, Metals & mining) | | | | | | |
Pan American Silver Corp.-U.S. Exchange Traded Shares (Materials, Metals & mining) | | | | | | |
SilverCrest Metals, Inc. (Materials, Metals & mining)† | | | | | | |
Skeena Resources Ltd. (Materials, Metals & mining)† | | | | | | |
Snowline Gold Corp. (Materials, Metals & mining)† | | | | | | |
Torex Gold Resources, Inc. Toronto Stock Exchange (Materials, Metals & mining)† | | | | | | |
Torex Gold Resources, Inc.-Legend Shares (Materials, Metals & mining)144A† | | | | | | |
Torex Gold Resources, Inc.-Legend Shares (Materials, Metals & mining)† | | | | | | |
Triple Flag Precious Metals Corp. (Materials, Metals & mining) | | | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
2 | Allspring Precious Metals Fund
Consolidated portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
Wheaton Precious Metals Corp. (Materials, Metals & mining) | | | | | | |
Wheaton Precious Metals Corp.-U.S. Exchange Traded Shares (Materials, Metals & mining) | | | | | | |
| | | | | | |
| | | | | | |
Gold Fields Ltd. ADR (Materials, Metals & mining) | | | | | | |
| | | | | | |
Anglogold Ashanti PLC (Materials, Metals & mining) | | | | | | |
Endeavour Mining PLC (Materials, Metals & mining) | | | | | | |
| | | | | | |
| | | | | | |
Newmont Corp. (Materials, Metals & mining) | | | | | | |
Newmont Corp.-Toronto Exchange Traded Shares (Materials, Metals & mining) | | | | | | |
Royal Gold, Inc. (Materials, Metals & mining) | | | | | | |
| | | | | | |
Total common stocks (Cost $161,505,253) | | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
Kinross Gold Corp. (Materials, Metals & mining)♦† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Ascot Resources Ltd. (Materials, Metals & mining)♦† | | | | | | |
| | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
Total commodities (Cost $4,532,552) | | | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Precious Metals Fund | 3
Consolidated portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Short-term investments: 1.86% | | | | | | |
Investment companies: 1.86% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $6,891,089) | | | | | | |
Total investments in securities (Cost $172,928,894) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Non-income-earning security |
| The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| Restricted security as to resale, excluding Rule 144A securities. The Fund held restricted securities with an aggregate current value of $165,626 (original an aggregate cost of $440,348), representing 0.04% of its net assets as of period end. |
| The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
| Represents an investment held in Special Investments (Cayman) SPC, the consolidated entity. |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| American depositary receipt |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these consolidated financial statements.
4 | Allspring Precious Metals Fund
Consolidated statement of assets and liabilities—September 30, 2024 (unaudited)
Consolidated financial statements
Consolidated statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $161,505,253) | |
Investments in affiliated securities, at value (cost $6,891,089) | |
Investments in commodities, at value (cost $4,532,552) | |
| |
Foreign currency, at value (cost $3,179) | |
Receivable for Fund shares sold | |
| |
Prepaid expenses and other assets | |
| |
| |
Payable for Fund shares redeemed | |
Payable for investments purchased | |
| |
Administration fees payable | |
Shareholder servicing fee payable | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Precious Metals Fund | 5
Consolidated Statement of operations — six months ended September 30, 2024 (unaudited)
Consolidated statement of operations
| |
Dividends (net of foreign withholdings taxes of $319,719) | |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
Foreign currency and foreign currency translations | |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Foreign currency and foreign currency translations | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these consolidated financial statements.
6 | Allspring Precious Metals Fund
Consolidated statement of changes in net assets
Consolidated statement of changes in net assets
|
Six months ended
September 30, 2024 (unaudited) | |
| | | | |
| | | | |
Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Precious Metals Fund | 7
Consolidated financial highlights
Consolidated financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these consolidated financial statements.
8 | Allspring Precious Metals Fund
Consolidated financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Precious Metals Fund | 9
Consolidated financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these consolidated financial statements.
10 | Allspring Precious Metals Fund
Consolidated financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these consolidated financial statements.
Allspring Precious Metals Fund | 11
Notes to consolidated financial statements (unaudited)
Notes to consolidated financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These consolidated financial statements report on the Allspring Precious Metals Fund (the “Fund”) which is a non-diversified series of the Trust.
2.
INVESTMENT IN SUBSIDIARY
The Fund invests in precious metals and minerals through Special Investments (Cayman) SPC (the “Subsidiary”), a wholly owned subsidiary incorporated on May 3, 2005 under the laws of the Cayman Islands as an exempted segregated portfolio company with limited liability. As of September 30, 2024, the Subsidiary held $20,233,007 in gold bullion representing 99.70% of its net assets. The Fund is the sole shareholder of the Subsidiary. As of September 30, 2024, the Fund held $20,293,222 in the Subsidiary, representing 5.47% of the Fund’s net assets prior to consolidation.
The consolidated financial statements of the Fund include the financial results of the Subsidiary. The Consolidated Portfolio of Investments includes positions of the Fund and the Subsidiary and the consolidated financial statements include the accounts of the Fund and the Subsidiary. Accordingly, all interfund balances and transactions between the Fund and the Subsidiary have been eliminated in consolidation.
3.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the consolidated financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures implemented by Allspring Funds Management are applied. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price or latest quoted bid price. On September 30, 2024, such fair value pricing was not used in pricing foreign securities.
Investments in commodities are valued at their last traded price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade
12 | Allspring Precious Metals Fund
Notes to consolidated financial statements (unaudited)
and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $182,674,390 and the unrealized gains (losses) consisted of:
As of March 31, 2024, the Fund had capital loss carryforwards which consisted of $39,337,476 in short-term capital losses and $92,692,485 in long-term capital losses.
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
Allspring Precious Metals Fund | 13
Notes to consolidated financial statements (unaudited)
4.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Additional sector, industry or geographic detail, if any, is included in the Consolidated Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
5.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
14 | Allspring Precious Metals Fund
Notes to consolidated financial statements (unaudited)
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.
The Subsidiary has entered into a separate advisory contract with Allspring Funds Management to manage the investment and reinvestment of its assets in conformity with its investment objectives and restrictions. Under this agreement, the Subsidiary does not pay Allspring Funds Management a fee for its services.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase.
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
| |
| |
| |
| |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $2,711 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
Allspring Precious Metals Fund | 15
Notes to consolidated financial statements (unaudited)
6.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $24,693,916 and $29,832,069, respectively. These amounts include purchase and sales transactions of the Subsidiary.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
The Fund concentrated its portfolio of investments in precious metals and minerals with a geographic emphasis in Canada. A fund that invests a substantial portion of its assets in any sector or geographic region may be more affected by changes in that sector or geographic region than would be a fund whose investments are not heavily weighted in any sector or geographic region.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
16 | Allspring Precious Metals Fund
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Precious Metals Fund | 17
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
18 | Allspring Precious Metals Fund
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Precious Metals Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Precious Metals Fund | 19
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was lower than the investment performance of its benchmark index, the FTSE Gold Mines Index, for the one-, three-, and ten-year periods under review, but higher for the five-year period under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
20 | Allspring Precious Metals Fund
Other information (unaudited)
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Precious Metals Fund | 21
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS0654 09-24
Allspring Utility and Telecommunications Fund
Long Form Financial Statements
Semi-Annual Report
Allspring Utility and Telecommunications Fund | 1
Portfolio of investments—September 30, 2024 (unaudited)
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Communication services: 5.26% | | | | | | |
Diversified telecommunication services: 2.56% | | | | | | |
Verizon Communications, Inc. | | | | | | |
| | | | | | |
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Consumer discretionary: 1.58% | | | | | | |
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Consumer staples distribution & retail : 0.96% | | | | | | |
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Financial services: 2.71% | | | | | | |
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Health care providers & services: 1.60% | | | | | | |
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Information technology: 2.82% | | | | | | |
Communications equipment: 2.82% | | | | | | |
| | | | | | |
| | | | | | |
Specialized REITs : 2.85% | | | | | | |
| | | | | | |
| | | | | | |
Electric utilities: 45.97% | | | | | | |
| | | | | | |
American Electric Power Co., Inc. | | | | | | |
Constellation Energy Corp. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
2 | Allspring Utility and Telecommunications Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
Independent power and renewable electricity producers: 2.83% | | | | | | |
| | | | | | |
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Public Service Enterprise Group, Inc. | | | | | | |
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American Water Works Co., Inc. | | | | | | |
Total common stocks (Cost $191,187,712) | | | | | | |
| | | | | |
Short-term investments: 1.50% | | | | | | |
Investment companies: 1.50% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $5,349,697) | | | | | | |
Total investments in securities (Cost $196,537,409) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
Allspring Utility and Telecommunications Fund | 3
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Utility and Telecommunications Fund
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $191,187,712) | |
Investments in affiliated securities, at value (cost $5,349,697) | |
| |
Receivable for Fund shares sold | |
Prepaid expenses and other assets | |
| |
| |
| |
Payable for Fund shares redeemed | |
Shareholder servicing fee payable | |
Administration fees payable | |
Professional fees payable | |
Trustees’ fees and expenses payable | |
| |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Allspring Utility and Telecommunications Fund | 5
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
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Income from affiliated securities | |
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Shareholder servicing fees | |
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Custody and accounting fees | |
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Shareholder report expenses | |
Trustees’ fees and expenses | |
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Less: Fee waivers and/or expense reimbursements | |
| |
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| |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
6 | Allspring Utility and Telecommunications Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
September 30, 2024 (unaudited) | |
| | | | |
| | | | |
Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
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Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
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Reinvestment of distributions | | | | |
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Payment for shares redeemed | | | | |
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Net decrease in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Utility and Telecommunications Fund | 7
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Utility and Telecommunications Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Utility and Telecommunications Fund | 9
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
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| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Utility and Telecommunications Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Utility and Telecommunications Fund | 11
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Utility and Telecommunications Fund (the “Fund”) which is a non-diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income quarterly and any net realized gains are paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
12 | Allspring Utility and Telecommunications Fund
Notes to financial statements (unaudited)
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $196,560,143 and the unrealized gains (losses) consisted of:
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
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| | | | |
| | | | |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds
Allspring Utility and Telecommunications Fund | 13
Notes to financial statements (unaudited)
Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.30% and declining to 0.20% as the average daily net assets of the Fund increase.
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
| |
| |
| |
| |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $1,312 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
14 | Allspring Utility and Telecommunications Fund
Notes to financial statements (unaudited)
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $12,435,869 and $28,002,579, respectively.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
The Fund concentrated its portfolio of investments in the utility sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
Allspring Utility and Telecommunications Fund | 15
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
16 | Allspring Utility and Telecommunications Fund
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
Allspring Utility and Telecommunications Fund | 17
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Utility and Telecommunications Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
18 | Allspring Utility and Telecommunications Fund
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the five- and ten year periods under review, but lower for the one- and three-year periods under review. The Board also noted that the investment performance of the Fund was higher than or in range of the investment performance of its benchmark index, the S&P 500 Utilities Index, for the one- and five-year periods under review, but lower for the three- and ten-year periods under review.
The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to the investment decisions and market factors that affected the Fund’s investment performance. The Board also took note of the Fund’s outperformance relative to the Universe over the longer time periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for each share class.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Utility and Telecommunications Fund | 19
Other information (unaudited)
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
20 | Allspring Utility and Telecommunications Fund
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS0667 09-24
Allspring Innovation Fund
(formerly, Allspring Discovery Innovation Fund)
Long Form Financial Statements
Semi-Annual Report
Allspring Innovation Fund | 1
Portfolio of investments—September 30, 2024 (unaudited)
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Communication services: 3.51% | | | | | | |
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Trade Desk, Inc. Class A† | | | | | | |
Consumer discretionary: 5.84% | | | | | | |
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Hotels, restaurants & leisure: 2.68% | | | | | | |
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Tradeweb Markets, Inc. Class A | | | | | | |
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Financial services: 5.58% | | | | | | |
Jack Henry & Associates, Inc. | | | | | | |
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Health care equipment & supplies: 3.01% | | | | | | |
Intuitive Surgical, Inc.† | | | | | | |
Health care technology: 3.21% | | | | | | |
Veeva Systems, Inc. Class A† | | | | | | |
Life sciences tools & services: 2.74% | | | | | | |
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Aerospace & defense: 5.85% | | | | | | |
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Commercial services & supplies: 8.53% | | | | | | |
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Ground transportation: 3.12% | | | | | | |
Old Dominion Freight Line, Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
2 | Allspring Innovation Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Information technology: 43.79% | | | | | | |
Communications equipment: 2.53% | | | | | | |
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Semiconductors & semiconductor equipment: 11.63% | | | | | | |
Advanced Micro Devices, Inc.† | | | | | | |
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Monolithic Power Systems, Inc. | | | | | | |
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Cadence Design Systems, Inc.† | | | | | | |
CCC Intelligent Solutions Holdings, Inc.† | | | | | | |
Crowdstrike Holdings, Inc. Class A† | | | | | | |
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Tyler Technologies, Inc.† | | | | | | |
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Rexford Industrial Realty, Inc. | | | | | | |
Total common stocks (Cost $309,766,734) | | | | | | |
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Short-term investments: 2.38% | | | | | | |
Investment companies: 2.38% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $10,303,163) | | | | | | |
Total investments in securities (Cost $320,069,897) | | | | | | |
Other assets and liabilities, net | | | | | | |
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| Non-income-earning security |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
Allspring Innovation Fund | 3
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
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Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Innovation Fund
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
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Investments in unaffiliated securities, at value (cost $309,766,734) | |
Investments in affiliated securities, at value (cost $10,303,163) | |
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Receivable for Fund shares sold | |
Prepaid expenses and other assets | |
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Shareholder servicing fees payable | |
Payable for Fund shares redeemed | |
Administration fees payable | |
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Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
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Total distributable earnings | |
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Computation of net asset value and offering price per share | |
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Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
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Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Allspring Innovation Fund | 5
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
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Dividends (net of foreign withholdings taxes of $6,079) | |
Income from affiliated securities | |
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Shareholder servicing fees | |
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Custody and accounting fees | |
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Shareholder report expenses | |
Trustees’ fees and expenses | |
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Less: Fee waivers and/or expense reimbursements | |
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Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
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Foreign currency and foreign currency translations | |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
6 | Allspring Innovation Fund
Statement of changes in net assets
Statement of changes in net assets
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Six months ended
September 30, 2024 (unaudited) | |
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Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
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Payment for shares redeemed | | | | |
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Net decrease in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Innovation Fund | 7
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Innovation Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is more than $(0.005). |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Innovation Fund | 9
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Innovation Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
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Net asset value, beginning of period | | | | | | |
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Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
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Net asset value, end of period | | | | | | |
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Ratios to average net assets (annualized) | | | | | | |
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Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Innovation Fund | 11
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Innovation Fund (formerly, Allspring Discovery Innovation Fund) (the “Fund”) which is a non-diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
12 | Allspring Innovation Fund
Notes to financial statements (unaudited)
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $321,756,589 and the unrealized gains (losses) consisted of:
As of March 31, 2024, the Fund had a qualified late-year ordinary loss of $501,441 which was recognized on the first day of the current fiscal year.
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
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Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
Allspring Innovation Fund | 13
Notes to financial statements (unaudited)
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.80% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.45% and declining to 0.30% as the average daily net assets of the Fund increase.
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
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Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
14 | Allspring Innovation Fund
Notes to financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $694 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $71,221,132 and $128,055,113, respectively.
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
The Fund concentrated its portfolio of investments in the information technology sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
Allspring Innovation Fund | 15
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
16 | Allspring Innovation Fund
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
Allspring Innovation Fund | 17
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Innovation Fund* (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors. The Board noted that the name of the Fund would be renamed to the Allspring Innovation Fund, effective August 2024.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.** The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the portfolio managers responsible for the day-to-day portfolio management of the Fund would be changing during the Summer of 2024, and the Board considered the revised portfolio management team that would be taking over portfolio
*
It was noted that the Board had approved changing the Fund’s name to the “Allspring Innovation Fund,” effective on or about August 9, 2024.
**
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
18 | Allspring Innovation Fund
Other information (unaudited)
management responsibilities. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was lower than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than or in range of the investment performance of its benchmark index, the S&P 500 Index, for all periods under review except the three-year period.
The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods identified above. The Board took note of the explanations for the relative underperformance during these periods, including with respect to investment decisions and market factors that affected the Fund’s investment performance. The Board noted that the Sub-Adviser had taken over responsibilities for the Fund in July 2022 and that the performance record for periods prior to that date were from the Fund’s prior sub-adviser.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including non-mutual fund clients such as institutional separate accounts.
Allspring Innovation Fund | 19
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
20 | Allspring Innovation Fund
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS1600 09-24
Allspring Disciplined Small Cap Fund
Long Form Financial Statements
Semi-Annual Report
Allspring Disciplined Small Cap Fund | 1
Portfolio of investments—September 30, 2024 (unaudited)
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Communication services: 2.00% | | | | | | |
Diversified telecommunication services: 0.25% | | | | | | |
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Interactive media & services: 1.02% | | | | | | |
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MediaAlpha, Inc. Class A† | | | | | | |
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Consumer discretionary: 10.11% | | | | | | |
Automobile components: 1.28% | | | | | | |
Modine Manufacturing Co.† | | | | | | |
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GigaCloud Technology, Inc. Class A† | | | | | | |
Diversified consumer services: 1.28% | | | | | | |
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Hotels, restaurants & leisure: 1.67% | | | | | | |
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Brinker International, Inc.† | | | | | | |
Hilton Grand Vacations, Inc.† | | | | | | |
International Game Technology PLC | | | | | | |
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Household durables: 2.66% | | | | | | |
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Taylor Morrison Home Corp. Class A† | | | | | | |
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Academy Sports & Outdoors, Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
2 | Allspring Disciplined Small Cap Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Specialty retail(continued) | | | | | | |
Asbury Automotive Group, Inc.† | | | | | | |
| | | | | | |
Designer Brands, Inc. Class A | | | | | | |
| | | | | | |
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| | | | | | |
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Textiles, apparel & luxury goods: 0.30% | | | | | | |
Superior Group of Cos., Inc. | | | | | | |
| | | | | | |
Consumer staples distribution & retail : 0.34% | | | | | | |
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Personal care products: 0.79% | | | | | | |
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Turning Point Brands, Inc. | | | | | | |
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Energy equipment & services: 1.38% | | | | | | |
Helix Energy Solutions Group, Inc.† | | | | | | |
| | | | | | |
Liberty Energy, Inc. Class A | | | | | | |
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Oil, gas & consumable fuels: 3.51% | | | | | | |
California Resources Corp. | | | | | | |
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International Seaways, Inc. | | | | | | |
| | | | | | |
Par Pacific Holdings, Inc.† | | | | | | |
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| | | | | | |
| | | | | | |
Teekay Tankers Ltd. Class A | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 3
Portfolio of investments—September 30, 2024 (unaudited)
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Bank of NT Butterfield & Son Ltd. | | | | | | |
CrossFirst Bankshares, Inc.† | | | | | | |
| | | | | | |
Enterprise Financial Services Corp. | | | | | | |
| | | | | | |
First Financial Bankshares, Inc. | | | | | | |
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International Bancshares Corp. | | | | | | |
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Provident Financial Services, Inc. | | | | | | |
Republic Bancorp, Inc. Class A | | | | | | |
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Artisan Partners Asset Management, Inc. Class A | | | | | | |
| | | | | | |
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Victory Capital Holdings, Inc. Class A | | | | | | |
Virtus Investment Partners, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Bread Financial Holdings, Inc. | | | | | | |
Enova International, Inc.† | | | | | | |
| | | | | | |
Regional Management Corp. | | | | | | |
| | | | | | |
Financial services: 3.17% | | | | | | |
| | | | | | |
| | | | | | |
Jackson Financial, Inc. Class A | | | | | | |
| | | | | | |
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NMI Holdings, Inc. Class A† | | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Disciplined Small Cap Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Financial services(continued) | | | | | | |
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CNO Financial Group, Inc. | | | | | | |
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Genworth Financial, Inc. Class A† | | | | | | |
Oscar Health, Inc. Class A† | | | | | | |
Skyward Specialty Insurance Group, Inc.† | | | | | | |
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ACADIA Pharmaceuticals, Inc.† | | | | | | |
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Amicus Therapeutics, Inc.† | | | | | | |
Apogee Therapeutics, Inc.† | | | | | | |
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Blueprint Medicines Corp.† | | | | | | |
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Catalyst Pharmaceuticals, Inc.† | | | | | | |
Crinetics Pharmaceuticals, Inc.† | | | | | | |
| | | | | | |
Denali Therapeutics, Inc.† | | | | | | |
| | | | | | |
Entrada Therapeutics, Inc.† | | | | | | |
Halozyme Therapeutics, Inc.† | | | | | | |
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Intellia Therapeutics, Inc.† | | | | | | |
Janux Therapeutics, Inc.† | | | | | | |
Kiniksa Pharmaceuticals International PLC Class A† | | | | | | |
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Relay Therapeutics, Inc.† | | | | | | |
Revolution Medicines, Inc.† | | | | | | |
SpringWorks Therapeutics, Inc.† | | | | | | |
| | | | | | |
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Ultragenyx Pharmaceutical, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
Voyager Therapeutics, Inc.† | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 5
Portfolio of investments—September 30, 2024 (unaudited)
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Health care equipment & supplies: 3.05% | | | | | | |
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Merit Medical Systems, Inc.† | | | | | | |
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Health care providers & services: 3.22% | | | | | | |
| | | | | | |
Alignment Healthcare, Inc.† | | | | | | |
Castle Biosciences, Inc.† | | | | | | |
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Hims & Hers Health, Inc.† | | | | | | |
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Option Care Health, Inc.† | | | | | | |
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Privia Health Group, Inc.† | | | | | | |
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Select Medical Holdings Corp. | | | | | | |
| | | | | | |
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Life sciences tools & services: 0.43% | | | | | | |
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| | | | | | |
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Amneal Pharmaceuticals, Inc.† | | | | | | |
Amphastar Pharmaceuticals, Inc.† | | | | | | |
ANI Pharmaceuticals, Inc.† | | | | | | |
| | | | | | |
Collegium Pharmaceutical, Inc.† | | | | | | |
Corcept Therapeutics, Inc.† | | | | | | |
Harmony Biosciences Holdings, Inc.† | | | | | | |
Pacira BioSciences, Inc.† | | | | | | |
| | | | | | |
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Aerospace & defense: 0.90% | | | | | | |
| | | | | | |
| | | | | | |
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The accompanying notes are an integral part of these financial statements.
6 | Allspring Disciplined Small Cap Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Commercial services & supplies: 1.17% | | | | | | |
| | | | | | |
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Healthcare Services Group, Inc.† | | | | | | |
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Construction & engineering: 1.77% | | | | | | |
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| | | | | | |
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Sterling Infrastructure, Inc.† | | | | | | |
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Electrical equipment: 2.36% | | | | | | |
Array Technologies, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
NEXTracker, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
Ground transportation: 0.52% | | | | | | |
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Marine transportation: 0.68% | | | | | | |
| | | | | | |
| | | | | | |
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Passenger airlines: 0.42% | | | | | | |
| | | | | | |
Professional services: 2.25% | | | | | | |
| | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 7
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Professional services(continued) | | | | | | |
| | | | | | |
Kelly Services, Inc. Class A | | | | | | |
| | | | | | |
| | | | | | |
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Trading companies & distributors: 2.81% | | | | | | |
Applied Industrial Technologies, Inc. | | | | | | |
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| | | | | | |
| | | | | | |
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Rush Enterprises, Inc. Class A | | | | | | |
WESCO International, Inc. | | | | | | |
| | | | | | |
Information technology: 12.51% | | | | | | |
Electronic equipment, instruments & components: 3.18% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Mirion Technologies, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
DigitalOcean Holdings, Inc.† | | | | | | |
Semiconductors & semiconductor equipment: 3.03% | | | | | | |
ACM Research, Inc. Class A† | | | | | | |
| | | | | | |
Axcelis Technologies, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
SMART Global Holdings, Inc.† | | | | | | |
Ultra Clean Holdings, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Clear Secure, Inc. Class A | | | | | | |
Consensus Cloud Solutions, Inc.† | | | | | | |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Disciplined Small Cap Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
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Freshworks, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
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| | | | | | |
| | | | | | |
Zeta Global Holdings Corp. Class A† | | | | | | |
| | | | | | |
Technology hardware, storage & peripherals: 0.31% | | | | | | |
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| | | | | | |
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| | | | | | |
| | | | | | |
Containers & packaging: 0.34% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Paper & forest products: 0.73% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Broadstone Net Lease, Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 9
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Diversified REITs(continued) | | | | | | |
CTO Realty Growth, Inc. REIT | | | | | | |
Essential Properties Realty Trust, Inc. | | | | | | |
| | | | | | |
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National Health Investors, Inc. | | | | | | |
| | | | | | |
Hotel & resort REITs: 1.92% | | | | | | |
Apple Hospitality REIT, Inc. | | | | | | |
| | | | | | |
DiamondRock Hospitality Co. | | | | | | |
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Ryman Hospitality Properties, Inc. | | | | | | |
| | | | | | |
Real estate management & development: 0.94% | | | | | | |
| | | | | | |
Newmark Group, Inc. Class A | | | | | | |
| | | | | | |
Residential REITs : 0.53% | | | | | | |
| | | | | | |
NexPoint Residential Trust, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Specialized REITs : 0.45% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Electric utilities: 0.54% | | | | | | |
| | | | | | |
| | | | | | |
Brookfield Infrastructure Corp. Class A | | | | | | |
New Jersey Resources Corp. | | | | | | |
Southwest Gas Holdings, Inc. | | | | | | |
| | | | | | |
Independent power and renewable electricity producers: 0.40% | | | | | | |
Clearway Energy, Inc. Class A | | | | | | |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Disciplined Small Cap Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Northwestern Energy Group, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Consolidated Water Co. Ltd. | | | | | | |
| | | | | | |
| | | | | | |
Total common stocks (Cost $46,689,386) | | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Life sciences tools & services: 0.00% | | | | | | |
OmniAb, Inc. $12.50 Earnout shares♦† | | | | | | |
OmniAb, Inc. $15.00 Earnout shares♦† | | | | | | |
| | | | | | |
| | | | | |
Short-term investments: 2.26% | | | | | | |
Investment companies: 2.26% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $1,281,402) | | | | | | |
Total investments in securities (Cost $47,970,788) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Non-income-earning security |
| The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 11
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
| | | | | | |
| | | | | | |
Micro E-Mini Russell 2000 Index | | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Disciplined Small Cap Fund
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $46,689,386) | |
Investments in affiliated securities, at value (cost $1,281,402) | |
| |
Cash at broker segregated for futures contracts | |
Receivable for Fund shares sold | |
Receivable for investments sold | |
| |
Receivable for daily variation margin on open futures contracts | |
Prepaid expenses and other assets | |
| |
| |
Payable for investments purchased | |
Payable for Fund shares redeemed | |
Professional fees payable | |
| |
Shareholder servicing fee payable | |
Administration fees payable | |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 13
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
| |
Dividends (net of foreign withholdings taxes of $1,434) | |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
| |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Disciplined Small Cap Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
September 30, 2024 (unaudited) | |
| | | | |
| | | | |
Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is more than $(0.005). |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Disciplined Small Cap Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 17
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Amount is less than $0.005. |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Disciplined Small Cap Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Disciplined Small Cap Fund | 19
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Disciplined Small Cap Fund (the “Fund”) which is a diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and is subject to equity price risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures contracts against default.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or received from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Statement of Operations.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
20 | Allspring Disciplined Small Cap Fund
Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $48,167,602 and the unrealized gains (losses) consisted of:
The separate classes of shares offered by the Fund differ principally in applicable sales charges, shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Disciplined Small Cap Fund | 21
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts, the current day’s variation margin is reported on the Statement of Assets and Liabilities. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.35% and declining to 0.25% as the average daily net assets of the Fund increase.
22 | Allspring Disciplined Small Cap Fund
Notes to financial statements (unaudited)
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
| |
| |
| |
| |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), an affiliate of Allspring Funds Management, the principal underwriter, is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor did not receive any front-end or contingent deferred sales charges from Class A shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $16,206,191 and $22,899,574, respectively.
6.
DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2024, the Fund entered into futures contracts for economic hedging purposes. The Fund had an average notional amount of $1,237,545 in long futures contracts during the six months ended September 30, 2024.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
Allspring Disciplined Small Cap Fund | 23
Notes to financial statements (unaudited)
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
24 | Allspring Disciplined Small Cap Fund
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Disciplined Small Cap Fund | 25
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
26 | Allspring Disciplined Small Cap Fund
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Disciplined Small Cap Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Disciplined Small Cap Fund | 27
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the Russell 2000® Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than the sum of these average rates for the Fund’s expense Groups for each share class.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
28 | Allspring Disciplined Small Cap Fund
Other information (unaudited)
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Disciplined Small Cap Fund | 29
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS4335 09-24
Long Form Financial Statements
Semi-Annual Report
Portfolio of investments—September 30, 2024 (unaudited)
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Communication services: 8.76% | | | | | | |
Diversified telecommunication services: 0.70% | | | | | | |
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Verizon Communications, Inc. | | | | | | |
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Live Nation Entertainment, Inc.† | | | | | | |
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Take-Two Interactive Software, Inc.† | | | | | | |
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Warner Bros Discovery, Inc.† | | | | | | |
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Interactive media & services: 6.16% | | | | | | |
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Meta Platforms, Inc. Class A | | | | | | |
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Charter Communications, Inc. Class A† | | | | | | |
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Interpublic Group of Cos., Inc. | | | | | | |
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Wireless telecommunication services: 0.21% | | | | | | |
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Consumer discretionary: 9.98% | | | | | | |
Automobile components: 0.05% | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Hotels, restaurants & leisure: 1.88% | | | | | | |
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Caesars Entertainment, Inc.† | | | | | | |
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Chipotle Mexican Grill, Inc. Class A† | | | | | | |
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Hilton Worldwide Holdings, Inc. | | | | | | |
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Marriott International, Inc. Class A | | | | | | |
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MGM Resorts International† | | | | | | |
Norwegian Cruise Line Holdings Ltd.† | | | | | | |
Royal Caribbean Cruises Ltd. | | | | | | |
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Household durables: 0.40% | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Specialty retail(continued) | | | | | | |
O’Reilly Automotive, Inc.† | | | | | | |
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Textiles, apparel & luxury goods: 0.37% | | | | | | |
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lululemon athletica, Inc.† | | | | | | |
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Ralph Lauren Corp. Class A | | | | | | |
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Brown-Forman Corp. Class B | | | | | | |
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Constellation Brands, Inc. Class A | | | | | | |
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Molson Coors Beverage Co. Class B | | | | | | |
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Consumer staples distribution & retail: 1.89% | | | | | | |
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Walgreens Boots Alliance, Inc. | | | | | | |
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Archer-Daniels-Midland Co. | | | | | | |
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Lamb Weston Holdings, Inc. | | | | | | |
The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Mondelez International, Inc. Class A | | | | | | |
Tyson Foods, Inc. Class A | | | | | | |
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Household products: 1.19% | | | | | | |
Church & Dwight Co., Inc. | | | | | | |
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Personal care products: 0.14% | | | | | | |
Estee Lauder Cos., Inc. Class A | | | | | | |
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Philip Morris International, Inc. | | | | | | |
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Energy equipment & services: 0.25% | | | | | | |
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Oil, gas & consumable fuels: 3.03% | | | | | | |
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Occidental Petroleum Corp. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Oil, gas & consumable fuels(continued) | | | | | | |
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Citizens Financial Group, Inc. | | | | | | |
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Huntington Bancshares, Inc. | | | | | | |
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PNC Financial Services Group, Inc. | | | | | | |
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Ameriprise Financial, Inc. | | | | | | |
Bank of New York Mellon Corp. | | | | | | |
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Cboe Global Markets, Inc. | | | | | | |
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FactSet Research Systems, Inc. | | | | | | |
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Goldman Sachs Group, Inc. | | | | | | |
Intercontinental Exchange, Inc. | | | | | | |
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MarketAxess Holdings, Inc. | | | | | | |
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Raymond James Financial, Inc. | | | | | | |
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T. Rowe Price Group, Inc. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Consumer finance(continued) | | | | | | |
Capital One Financial Corp. | | | | | | |
Discover Financial Services | | | | | | |
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Financial services: 4.06% | | | | | | |
Berkshire Hathaway, Inc. Class B† | | | | | | |
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Fidelity National Information Services, Inc. | | | | | | |
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Jack Henry & Associates, Inc. | | | | | | |
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American International Group, Inc. | | | | | | |
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Cincinnati Financial Corp. | | | | | | |
Erie Indemnity Co. Class A | | | | | | |
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Hartford Financial Services Group, Inc. | | | | | | |
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Marsh & McLennan Cos., Inc. | | | | | | |
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Principal Financial Group, Inc. | | | | | | |
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Prudential Financial, Inc. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Regeneron Pharmaceuticals, Inc.† | | | | | | |
Vertex Pharmaceuticals, Inc.† | | | | | | |
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Health care equipment & supplies: 2.34% | | | | | | |
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Baxter International, Inc. | | | | | | |
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Edwards Lifesciences Corp.† | | | | | | |
GE HealthCare Technologies, Inc. | | | | | | |
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IDEXX Laboratories, Inc.† | | | | | | |
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Intuitive Surgical, Inc.† | | | | | | |
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Zimmer Biomet Holdings, Inc. | | | | | | |
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Health care providers & services: 2.45% | | | | | | |
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Universal Health Services, Inc. Class B | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Life sciences tools & services: 1.24% | | | | | | |
Agilent Technologies, Inc. | | | | | | |
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Charles River Laboratories International, Inc.† | | | | | | |
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Mettler-Toledo International, Inc.† | | | | | | |
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Thermo Fisher Scientific, Inc. | | | | | | |
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West Pharmaceutical Services, Inc. | | | | | | |
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Aerospace & defense: 1.93% | | | | | | |
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Huntington Ingalls Industries, Inc. | | | | | | |
L3Harris Technologies, Inc. | | | | | | |
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Air freight & logistics: 0.39% | | | | | | |
CH Robinson Worldwide, Inc. | | | | | | |
Expeditors International of Washington, Inc. | | | | | | |
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United Parcel Service, Inc. Class B | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Portfolio of investments—September 30, 2024 (unaudited)
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Building products(continued) | | | | | | |
Builders FirstSource, Inc.† | | | | | | |
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Johnson Controls International PLC | | | | | | |
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Commercial services & supplies: 0.56% | | | | | | |
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Republic Services, Inc. Class A | | | | | | |
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Construction & engineering: 0.09% | | | | | | |
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Electrical equipment: 0.75% | | | | | | |
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Rockwell Automation, Inc. | | | | | | |
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Ground transportation: 0.98% | | | | | | |
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J.B. Hunt Transport Services, Inc. | | | | | | |
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Old Dominion Freight Line, Inc. | | | | | | |
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Industrial conglomerates: 0.42% | | | | | | |
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Honeywell International, Inc. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
10 | Allspring Index Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Illinois Tool Works, Inc. | | | | | | |
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Stanley Black & Decker, Inc. | | | | | | |
Westinghouse Air Brake Technologies Corp. | | | | | | |
| | | | | | |
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Passenger airlines: 0.14% | | | | | | |
| | | | | | |
| | | | | | |
United Airlines Holdings, Inc.† | | | | | | |
| | | | | | |
Professional services: 0.64% | | | | | | |
| | | | | | |
Automatic Data Processing, Inc. | | | | | | |
Broadridge Financial Solutions, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Verisk Analytics, Inc. Class A | | | | | | |
| | | | | | |
Trading companies & distributors: 0.29% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Information technology: 31.33% | | | | | | |
Communications equipment: 0.84% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 11
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Electronic equipment, instruments & components: 0.58% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Keysight Technologies, Inc.† | | | | | | |
| | | | | | |
Teledyne Technologies, Inc.† | | | | | | |
| | | | | | |
Zebra Technologies Corp. Class A† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Akamai Technologies, Inc.† | | | | | | |
Cognizant Technology Solutions Corp. Class A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
International Business Machines Corp. | | | | | | |
| | | | | | |
| | | | | | |
Semiconductors & semiconductor equipment: 10.98% | | | | | | |
Advanced Micro Devices, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Microchip Technology, Inc. | | | | | | |
| | | | | | |
Monolithic Power Systems, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Index Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
Cadence Design Systems, Inc.† | | | | | | |
Crowdstrike Holdings, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Palantir Technologies, Inc. Class A† | | | | | | |
Palo Alto Networks, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Tyler Technologies, Inc.† | | | | | | |
| | | | | | |
Technology hardware, storage & peripherals: 7.57% | | | | | | |
| | | | | | |
Dell Technologies, Inc. Class C | | | | | | |
Hewlett Packard Enterprise Co. | | | | | | |
| | | | | | |
| | | | | | |
Seagate Technology Holdings PLC | | | | | | |
Super Micro Computer, Inc.† | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Air Products & Chemicals, Inc. | | | | | | |
| | | | | | |
| | | | | | |
CF Industries Holdings, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
International Flavors & Fragrances, Inc. | | | | | | |
| | | | | | |
LyondellBasell Industries NV Class A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 13
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Construction materials: 0.13% | | | | | | |
Martin Marietta Materials, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Containers & packaging: 0.24% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Packaging Corp. of America | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Alexandria Real Estate Equities, Inc. | | | | | | |
Healthpeak Properties, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Hotel & resort REITs: 0.03% | | | | | | |
Host Hotels & Resorts, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Real estate management & development: 0.14% | | | | | | |
CBRE Group, Inc. Class A† | | | | | | |
| | | | | | |
| | | | | | |
Residential REITs : 0.29% | | | | | | |
AvalonBay Communities, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Essex Property Trust, Inc. | | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
14 | Allspring Index Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Residential REITs (continued) | | | | | | |
Mid-America Apartment Communities, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Federal Realty Investment Trust | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Simon Property Group, Inc. | | | | | | |
| | | | | | |
Specialized REITs : 1.03% | | | | | | |
| | | | | | |
| | | | | | |
Digital Realty Trust, Inc. | | | | | | |
| | | | | | |
Extra Space Storage, Inc. | | | | | | |
| | | | | | |
| | | | | | |
SBA Communications Corp. Class A | | | | | | |
VICI Properties, Inc. Class A | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Electric utilities: 1.64% | | | | | | |
| | | | | | |
American Electric Power Co., Inc. | | | | | | |
Constellation Energy Corp. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Pinnacle West Capital Corp. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 15
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Independent power and renewable electricity producers: 0.11% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Consolidated Edison, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Public Service Enterprise Group, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
American Water Works Co., Inc. | | | | | | |
Total common stocks (Cost $289,685,145) | | | | | | |
| | | | | |
Short-term investments: 0.98% | | | | | | |
Investment companies: 0.98% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $13,091,726) | | | | | | |
Total investments in securities (Cost $302,776,871) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Non-income-earning security |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Index Fund
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 17
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $289,685,145) | |
Investments in affiliated securities, at value (cost $13,091,726) | |
| |
Cash at broker segregated for futures contracts | |
| |
Receivable for Fund shares sold | |
Receivable for investments sold | |
Receivable for daily variation margin on open futures contracts | |
| |
Prepaid expenses and other assets | |
| |
| |
Payable for Fund shares redeemed | |
Shareholder servicing fee payable | |
Administration fees payable | |
| |
Trustees’ fees and expenses payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
18 | Allspring Index Fund
Statement of operations
| |
Dividends (net of foreign withholdings taxes of $2,127) | |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
Less: Fee waivers and/or expense reimbursements | |
| |
| |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
| |
| |
| |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 19
Statement of changes in net assets
Statement of changes in net assets
| Six months ended September 30, 2024 | Year ended March 31, 20241 | |
| | | | | | |
| | | | | | |
Net realized gains on investments | | | | | | |
Net change in unrealized gains (losses) on investments | | | | | | |
Net increase in net assets resulting from operations | | | | | | |
Distributions to shareholders from | | | | | | |
Net investment income and net realized gains | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Capital share transactions | | | | | | |
Proceeds from shares sold | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Reinvestment of distributions | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Payment for shares redeemed | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net increase (decrease) in net assets resulting from capital share transactions | | | | | | |
Total increase (decrease) in net assets | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
1 For the ten months ended March 31, 2024. The Fund changed its fiscal year end from May 31 to March 31, effective March 31, 2024.
The accompanying notes are an integral part of these financial statements.
20 | Allspring Index Fund
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | | |
| | | | | |
Net asset value, beginning of period | | | | | | | |
| | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | | |
Total from investment operations | | | | | | | |
Distributions to shareholders from | | | | | | | |
| | | | | | | |
| | | | | | | |
Total distributions to shareholders | | | | | | | |
Net asset value, end of period | | | | | | | |
| | | | | | | |
Ratios to average net assets (annualized) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net assets, end of period (000s omitted) | | | | | | | |
| Ratios include net expenses allocated from the affiliated Master Portfolio which were as follows: |
| For the ten months ended March 31, 2024. The Fund changed its fiscal year end from May 31 to March 31, effective March 31, 2024. |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate is calculated by multiplying the affiliated Master Portfolio’s percentage of the Fund’s total investment in securities at the end of the period by the affiliated Master Portfolio’s portfolio turnover rate. |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 21
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | | |
| | | | | |
Net asset value, beginning of period | | | | | | | |
| | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | | |
Total from investment operations | | | | | | | |
Distributions to shareholders from | | | | | | | |
| | | | | | | |
| | | | | | | |
Total distributions to shareholders | | | | | | | |
Net asset value, end of period | | | | | | | |
| | | | | | | |
Ratios to average net assets (annualized) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net assets, end of period (000s omitted) | | | | | | | |
| Ratios include net expenses allocated from the affiliated Master Portfolio which were as follows: |
| For the ten months ended March 31, 2024. The Fund changed its fiscal year end from May 31 to March 31, effective March 31, 2024. |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate is calculated by multiplying the affiliated Master Portfolio’s percentage of the Fund’s total investment in securities at the end of the period by the affiliated Master Portfolio’s portfolio turnover rate. |
The accompanying notes are an integral part of these financial statements.
22 | Allspring Index Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | | |
| | | | | |
Net asset value, beginning of period | | | | | | | |
| | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | | |
Total from investment operations | | | | | | | |
Distributions to shareholders from | | | | | | | |
| | | | | | | |
| | | | | | | |
Total distributions to shareholders | | | | | | | |
Net asset value, end of period | | | | | | | |
| | | | | | | |
Ratios to average net assets (annualized) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net assets, end of period (000s omitted) | | | | | | | |
| Ratios include net expenses allocated from the affiliated Master Portfolio which were as follows: |
| For the ten months ended March 31, 2024. The Fund changed its fiscal year end from May 31 to March 31, effective March 31, 2024. |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| Portfolio turnover rate is calculated by multiplying the affiliated Master Portfolio’s percentage of the Fund’s total investment in securities at the end of the period by the affiliated Master Portfolio’s portfolio turnover rate. |
The accompanying notes are an integral part of these financial statements.
Allspring Index Fund | 23
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Index Fund (the “Fund”) which is a diversified series of the Trust.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities, exchange-traded funds and futures contracts that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific amount of a commodity, financial instrument or currency at a specified price and on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and is subject to equity price risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are generally entered into on a regulated futures exchange and cleared through a clearinghouse associated with the exchange. With futures contracts, there is minimal counterparty risk to the Fund since futures contracts are exchange-traded and the exchange’s clearinghouse, as the counterparty to all exchange-traded futures, guarantees the futures contracts against default.
Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) with the broker in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are paid to or received from the broker each day equal to the daily changes in the contract value. Such payments are recorded as unrealized gains or losses and, if any, shown as variation margin receivable (payable) in the Statement of Assets and Liabilities. Should the Fund fail to make requested variation margin payments, the broker can gain access to the initial margin to satisfy the Fund’s payment obligations. When the contracts are closed, a realized gain or loss is recorded in the Statement of Operations.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
24 | Allspring Index Fund
Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $303,218,008 and the unrealized gains (losses) consisted of:
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Index Fund | 25
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Futures contracts are reported at their cumulative unrealized gains (losses) at measurement date as reported in the table following the Portfolio of Investments. For futures contracts, the current day’s variation margin is reported on the Statement of Assets and Liabilities. All other assets and liabilities are reported at their market value at measurement date.
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.14% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.05% and declining to 0.02% as the average daily net assets of the Fund increase.
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As
26 | Allspring Index Fund
Notes to financial statements (unaudited)
compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
| |
| |
| |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $730 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Class C are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. Administrator Class is charged a fee at an annual rate up to 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $19,588,625 and $64,243,329, respectively.
6.
DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2024, the Fund entered into futures contracts to gain market exposure. The Fund had an average notional amount of $24,588,758 in short futures contracts during the six months ended September 30, 2024.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
Allspring Index Fund | 27
Notes to financial statements (unaudited)
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
As of the end of the period, the Fund concentrated its portfolio of investments in the information technology sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
28 | Allspring Index Fund
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Index Fund | 29
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
30 | Allspring Index Fund
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Index Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Index Fund | 31
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was in range of the investment performance of its benchmark index, the S&P 500 Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of the average rate for the Fund’s expense Group for the Class A shares and higher than the sum of the average rates for the Fund’s expense Group for the Administrator Class shares.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
32 | Allspring Index Fund
Other information (unaudited)
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Index Fund | 33
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For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS3329 09-24
Allspring Managed Account
Allspring Managed Account CoreBuilder® Shares – Series EPI
Long Form Financial Statements
Semi-Annual Report
Allspring Managed Account | 1
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
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Communication services: 10.20% | | | | | | |
Interactive media & services: 10.20% | | | | | | |
| | | | | | |
Meta Platforms, Inc. Class A# | | | | | | |
| | | | | | |
Consumer discretionary: 10.96% | | | | | | |
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Hotels, restaurants & leisure: 4.34% | | | | | | |
Hilton Worldwide Holdings, Inc.# | | | | | | |
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Household durables: 1.32% | | | | | | |
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Consumer staples distribution & retail : 1.10% | | | | | | |
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Mondelez International, Inc. Class A# | | | | | | |
Personal care products: 1.49% | | | | | | |
| | | | | | |
| | | | | | |
Oil, gas & consumable fuels: 4.65% | | | | | | |
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The accompanying notes are an integral part of these financial statements.
2 | Allspring Managed Account
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Financial services: 1.89% | | | | | | |
| | | | | | |
| | | | | | |
Manulife Financial Corp.# | | | | | | |
| | | | | | |
| | | | | | |
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Health care providers & services: 3.01% | | | | | | |
UnitedHealth Group, Inc.# | | | | | | |
Life sciences tools & services: 1.38% | | | | | | |
Thermo Fisher Scientific, Inc.# | | | | | | |
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Aerospace & defense: 3.30% | | | | | | |
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Air freight & logistics: 1.60% | | | | | | |
United Parcel Service, Inc. Class B# | | | | | | |
Commercial services & supplies: 1.44% | | | | | | |
| | | | | | |
Electrical equipment: 1.93% | | | | | | |
| | | | | | |
Ground transportation: 1.48% | | | | | | |
| | | | | | |
Information technology: 30.38% | | | | | | |
Communications equipment: 1.52% | | | | | | |
| | | | | | |
Electronic equipment, instruments & components: 1.22% | | | | | | |
| | | | | | |
| | | | | | |
Cognizant Technology Solutions Corp. Class A# | | | | | | |
Semiconductors & semiconductor equipment: 8.31% | | | | | | |
Advanced Micro Devices, Inc.†# | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 3
Portfolio of investments—September 30, 2024 (unaudited)
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Semiconductors & semiconductor equipment(continued) | | | | | | |
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Technology hardware, storage & peripherals: 8.47% | | | | | | |
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Total common stocks (Cost $2,653,951) | | | | | | |
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Short-term investments: 3.36% | | | | | | |
Investment companies: 3.36% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $115,752) | | | | | | |
Total investments in securities (Cost $2,769,703) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| All or a portion of this security is segregated as collateral for investments in derivative instruments. |
| Non-income-earning security |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The rate represents the 7-day annualized yield at period end. |
|
| American depositary receipt |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Managed Account
Portfolio of investments—September 30, 2024 (unaudited)
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Invesco QQQ Trust, Series 1 | | | | | | |
Invesco QQQ Trust, Series 1 | | | | | | |
Invesco QQQ Trust, Series 1 | | | | | | |
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SPDR Dow Jones Industrial Average ETF | | | | | | |
SPDR Dow Jones Industrial Average ETF | | | | | | |
SPDR Dow Jones Industrial Average ETF | | | | | | |
SPDR Dow Jones Industrial Average ETF | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 5
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $2,653,951) | |
Investments in affiliated securities, at value (cost $115,752) | |
Receivable for Fund shares sold | |
Receivable for investments sold | |
| |
| |
Prepaid expenses and other assets | |
| |
| |
Written options, at value (premiums received $17,936) | |
Professional fees payable | |
Overdraft due to custodian bank | |
Accrued expenses and other liabilities | |
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Total distributable earnings | |
| |
Computation of net asset value per share | |
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| |
Net asset value per share | |
1 The Fund has an unlimited number of authorized shares.
The accompanying notes are an integral part of these financial statements.
6 | Allspring Managed Account
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
| |
Dividends (net of foreign withholdings taxes of $977) | |
Income from affiliated securities | |
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Custody and accounting fees | |
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Shareholder report expenses | |
Trustees’ fees and expenses | |
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Less: Fee waivers and/or expense reimbursements | |
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Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
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Foreign currency and foreign currency translations | |
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Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
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Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 7
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
September 30, 2024 (unaudited) | YEAR ENDED March 31, 20241 |
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Net realized gains (losses) on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
Reinvestment of distributions | | | | |
Net increase in net assets resulting from capital share transactions | | | | |
Total increase in net assets | | | | |
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1 For the period from June 8, 2023 (commencement of operations) to March 31, 2024
The accompanying notes are an integral part of these financial statements.
8 | Allspring Managed Account
Financial highlights
(For a share outstanding throughout the period)
| Six months ended
September 30, 2024
(unaudited) | |
| |
Net asset value, beginning of period | | |
| | |
Net realized and unrealized gains (losses) on investments | | |
Total from investment operations | | |
Distributions to shareholders from | | |
| | |
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Total distributions to shareholders | | |
Net asset value, end of period | | |
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Ratios to average net assets (annualized) | | |
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Net assets, end of period (000s omitted) | | |
| Ratios include dividends on securities sold short as follows: |
Year ended March 31, 20241 | |
| For the period from June 8, 2023 (commencement of operations) to March 31, 2024 |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
| The manager has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses, and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term. |
The accompanying notes are an integral part of these financial statements.
Allspring Managed Account | 9
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Managed Account CoreBuilder Shares - Series EPI (the “Fund”) which is a diversified series of the Trust.
The Fund is a special purpose fund invested primarily in a diversified portfolio of equity securities of approximately 40 to 60 large capitalization U.S. companies and is intended to be used in combination with selected individual securities to effectively model institutional-level investment strategies. The Fund is intended to help enable certain separately managed account investors to achieve greater diversification than smaller managed accounts might otherwise achieve.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Options that are listed on a foreign or domestic exchange or market are valued at the closing mid-price. Non-listed options are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.
10 | Allspring Managed Account
Notes to financial statements (unaudited)
The Fund may also purchase call or put options. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the options are standardized. The Fund is subject to equity price risk. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions to shareholders
Distributions to shareholders are recorded on the ex-dividend date and paid from net investment income monthly and any net realized gains are paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the period since commencement of operations will be subject to examination by the federal and Delaware revenue authorities.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $2,752,194 and the unrealized gains (losses) consisted of:
As of March 31, 2024, the Fund had current year deferred post-October capital losses consisting of $72,994 in short-term capital losses and $70,981 in long-term capital losses which was recognized in the first day of the current fiscal year.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Managed Account | 11
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
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|
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| | | | |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund did not have any transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
The Trust has entered into an investment management contract with Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. The manager is responsible for implementing investment policies and guidelines and for supervising the subadviser, who is responsible for day-to-day portfolio management of the Fund. For providing these services, Allspring Funds Management does not receive a fee from the Fund but is entitled to receive fees from separately managed account sponsors of the wrap-fee programs. Out of these fees, Allspring Funds Management pays Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, for its services as the subadviser to the Fund.
Generally, no ordinary operating fees or expenses are charged to the Fund. Allspring Funds Management has contractually committed to irrevocably absorb and pay or reimburse all ordinary operating expenses of the Fund, except portfolio transactions or other investment-related costs (e.g., commissions), fees payable for services provided by the Fund’s securities lending agent (if any), interest, taxes, leverage expenses, and other expenses not incurred in the ordinary course of the Fund’s business. This commitment has an indefinite term.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $267,985 and $260,034, respectively.
6.
DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2024, the Fund entered into written options for income generation and hedging purposes. The Fund had an average of 158 written option contracts during six months ended September 30, 2024.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
12 | Allspring Managed Account
Notes to financial statements (unaudited)
For options contracts, the Fund has the right to use the collateral to offset any losses incurred. As of September 30, 2024, the Fund had written options contracts with the following counterparty which are subject to offset:
| Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
| | | | |
| Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty. |
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
Concentration risk exists when a shareholder owns a large amount of shares of the Fund. A fund with a concentration of ownership may be more affected by the investment activity of those shareholders than would be a fund that does not have any ownership concentration. As of September 30, 2024, Allspring Funds Management or one of its affiliates owned 99% of the Fund.
As of the end of the period, the Fund concentrated its portfolio of investments in the information technology sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
Allspring Managed Account | 13
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
14 | Allspring Managed Account
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
Allspring Managed Account | 15
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Managed Account CoreBuilder® Shares – Series EPI (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the absence of compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
16 | Allspring Managed Account
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, fair valuation designee, and derivatives risk management program manager. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board received and considered information regarding the “zero fee and expense” structure of the Fund. Specifically, the Board noted that the Fund’s gross operating expense ratio and each of its various components, including management fees, administration fees, custody fees, Rule 12b-1 fees, and other fees, were zero. The Board also noted Allspring Funds Management’s representations that the Fund is a special purpose mutual fund for use exclusively within Allspring Funds Management’s separately managed account (“SMA”) advisory business and, as such, Allspring Funds Management would assume and pay or reimburse the Fund under an Expense Assumption Agreement all of the ordinary operating expenses of the Fund, excluding portfolio transaction or other investment related costs, fees payable for services provided by the Fund’s securities lending agent, interest, taxes, leverage expenses, and other expenses not incurred in the ordinary course of the Fund’s business. The Board further noted that Allspring Funds Management is paid a negotiated fee by each SMA sponsor, and that the fee level is identical for all sponsors of SMAs that invest in the Fund.
In light of this unique fee and distribution structure and special purpose of the Fund, the Board does not conduct an investment performance and fee review relative to a peer group or universe. The Board took into account the fee and distribution structure and special purpose of the Fund in deciding to re-approve the Advisory Agreements for the Fund.
Investment management and sub-advisory fee rates
The Board reviewed and considered that the contractual investment management fee rate payable by the Fund to Allspring Funds Management for investment advisory services and fund administration services (the “Management Agreement Rate”) was zero, and also reviewed and considered that the Fund’s other expenses would normally be zero, because of Allspring Funds Management’s commitment to assume and pay or reimburse all of the ordinary operating expenses of the Fund under an Expense Assumption Agreement. The Board also considered that the fee rate payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services was also zero, and that any sub-advisory fees would be paid from the fees Allspring Funds Management receives from SMA sponsors and not by the Fund.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the absence of any compensation payable by the Fund to Allspring Funds Management pursuant to the Management Agreement and by Allspring Funds Management to the Sub-Adviser, in each case, was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
The Board acknowledged that Allspring Funds Management does not earn any fee revenue directly from the Fund, given its zero fee structure. Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
In light of the unique fee structure and special purpose of the Fund, the Board did not conduct an analysis of economies of scale in the context of reviewing the Fund’s Advisory Agreements.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund.
The Board received and considered information about payments that Allspring Funds Management would receive from the SMA sponsors. The Board also reviewed information about whether and to what extent soft dollar credits are sought and how any such credits are utilized.
Allspring Managed Account | 17
Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the absence of any compensation payable by the Fund to Allspring Funds Management and by Allspring Funds Management to the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
18 | Allspring Managed Account
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For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
Attn: Managed Account Services
P.O. Box 1450
Milwaukee, WI 53201
Website: allspringglobal.com
Telephone: 1-888-877-9275
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-888-877-9275 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS4905 09-24
Allspring Special Small Cap Value Fund
Long Form Financial Statements
Semi-Annual Report
Allspring Special Small Cap Value Fund | 1
Portfolio of investments—September 30, 2024 (unaudited)
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Communication services: 0.49% | | | | | | |
Interactive media & services: 0.25% | | | | | | |
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Consumer discretionary: 3.06% | | | | | | |
Automobile components: 0.32% | | | | | | |
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Holley, Inc. New York Stock Exchange† | | | | | | |
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Hotels, restaurants & leisure: 1.44% | | | | | | |
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Household durables: 0.09% | | | | | | |
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Textiles, apparel & luxury goods: 1.07% | | | | | | |
Levi Strauss & Co. Class A | | | | | | |
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Tootsie Roll Industries, Inc. | | | | | | |
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Household products: 3.93% | | | | | | |
Central Garden & Pet Co.† | | | | | | |
Central Garden & Pet Co. Class A† | | | | | | |
Spectrum Brands Holdings, Inc.♠ | | | | | | |
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The accompanying notes are an integral part of these financial statements.
2 | Allspring Special Small Cap Value Fund
Portfolio of investments—September 30, 2024 (unaudited)
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Personal care products: 0.29% | | | | | | |
Edgewell Personal Care Co. | | | | | | |
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Energy equipment & services: 1.24% | | | | | | |
Forum Energy Technologies, Inc.† | | | | | | |
Liberty Energy, Inc. Class A | | | | | | |
Patterson-UTI Energy, Inc. | | | | | | |
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Oil, gas & consumable fuels: 3.96% | | | | | | |
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Magnolia Oil & Gas Corp. Class A | | | | | | |
Nordic American Tankers Ltd. | | | | | | |
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GlassBridge Enterprises, Inc.♠♦‡† | | | | | | |
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MidCap Financial Investment Corp. BDC | | | | | | |
New Mountain Finance Corp. BDC | | | | | | |
Pershing Square Tontine Holdings Ltd.♦† | | | | | | |
Westwood Holdings Group, Inc.♠ | | | | | | |
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Financial services: 2.05% | | | | | | |
Compass Diversified Holdings† | | | | | | |
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CNO Financial Group, Inc. | | | | | | |
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The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 3
Portfolio of investments—September 30, 2024 (unaudited)
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Hanover Insurance Group, Inc. | | | | | | |
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Stewart Information Services Corp. | | | | | | |
White Mountains Insurance Group Ltd. | | | | | | |
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Mortgage real estate investment trusts (REITs): 2.73% | | | | | | |
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Apollo Commercial Real Estate Finance, Inc. | | | | | | |
New York Mortgage Trust, Inc. | | | | | | |
Two Harbors Investment Corp. | | | | | | |
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Health care equipment & supplies: 1.49% | | | | | | |
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Health care providers & services: 1.19% | | | | | | |
Ardent Health Partners, Inc.† | | | | | | |
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Life sciences tools & services: 0.56% | | | | | | |
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Prestige Consumer Healthcare, Inc.† | | | | | | |
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| | | | | | |
| | | | | | |
| | | | | | |
Janus International Group, Inc.† | | | | | | |
Quanex Building Products Corp. | | | | | | |
Simpson Manufacturing Co., Inc. | | | | | | |
| | | | | | |
| | | | | | |
Commercial services & supplies: 2.34% | | | | | | |
| | | | | | |
BrightView Holdings, Inc.† | | | | | | |
Custom Truck One Source, Inc.† | | | | | | |
The accompanying notes are an integral part of these financial statements.
4 | Allspring Special Small Cap Value Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
Commercial services & supplies(continued) | | | | | | |
| | | | | | |
Matthews International Corp. Class A | | | | | | |
| | | | | | |
| | | | | | |
Construction & engineering: 1.61% | | | | | | |
| | | | | | |
MDU Resources Group, Inc. | | | | | | |
| | | | | | |
Electrical equipment: 0.93% | | | | | | |
| | | | | | |
Ground transportation: 0.87% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Atmus Filtration Technologies, Inc. | | | | | | |
| | | | | | |
| | | | | | |
Franklin Electric Co., Inc. | | | | | | |
Gates Industrial Corp. PLC† | | | | | | |
| | | | | | |
| | | | | | |
Mayville Engineering Co., Inc.♠† | | | | | | |
| | | | | | |
| | | | | | |
Professional services: 3.26% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Trading companies & distributors: 0.61% | | | | | | |
| | | | | | |
Custom Truck One Source, Inc. New York Stock Exchange† | | | | | | |
| | | | | | |
Information technology: 5.08% | | | | | | |
Electronic equipment, instruments & components: 2.12% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 5
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
Global Blue Group Holding AG† | | | | | | |
| | | | | | |
| | | | | | |
Semiconductors & semiconductor equipment: 0.15% | | | | | | |
| | | | | | |
| | | | | | |
E2open Parent Holdings, Inc.† | | | | | | |
Pagaya Technologies Ltd. Class A†# | | | | | | |
| | | | | | |
Synchronoss Technologies, Inc.† | | | | | | |
| | | | | | |
Technology hardware, storage & peripherals: 0.50% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Minerals Technologies, Inc. | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Construction materials: 3.01% | | | | | | |
| | | | | | |
Containers & packaging: 4.48% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Residential REITs : 0.56% | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
6 | Allspring Special Small Cap Value Fund
Portfolio of investments—September 30, 2024 (unaudited)
| | | | | |
| | | | | | |
Independent power and renewable electricity producers: 0.44% | | | | | | |
| | | | | | |
Total common stocks (Cost $4,201,600,874) | | | | | | |
| | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Pershing Square Holdings Ltd.♦† | | | | | | |
| | | | | | |
| | | | | |
Short-term investments: 1.64% | | | | | | |
Investment companies: 1.64% | | | | | | |
Allspring Government Money Market Fund Select Class♠∞ | | | | | | |
Total short-term investments (Cost $89,729,017) | | | | | | |
Total investments in securities (Cost $4,291,329,891) | | | | | | |
Other assets and liabilities, net | | | | | | |
| | | | | | |
| Non-income-earning security |
| The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| The security is fair valued in accordance with procedures approved by the Board of Trustees. |
| Security is valued using significant unobservable inputs. |
| All or a portion of this security is segregated as collateral for investments in derivative instruments. |
| The rate represents the 7-day annualized yield at period end. |
|
| Business Development Company |
| Real estate investment trust |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 7
Portfolio of investments—September 30, 2024 (unaudited)
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
GlassBridge Enterprises, Inc.† | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Mayville Engineering Co., Inc.† | | | | | | | | |
Spectrum Brands Holdings, Inc. | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Westwood Holdings Group, Inc. | | | | | | | | |
| | | | | | | | |
Allspring Government Money Market Fund Select Class | | | | | | | | |
Investments in affiliates no longer held at end of period | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Transactions with issuers that were no longer affiliates of the Fund at the end of the period were as follows:
| | | | | Net
change in
unrealized
gains
(losses) | | | Income
from
affiliated
securities |
| | | | | | | | |
Quanex Building Products Corp. | | | | | | | | |
| Non-income-earning security |
| | | | | | |
| | | | | | |
| Bank of America Securities, Inc. | | | | | |
| Bank of America Securities, Inc. | | | | | |
| | | | | | |
| Bank of America Securities, Inc. | | | | | |
| Bank of America Securities, Inc. | | | | | |
| Bank of America Securities, Inc. | | | | | |
| Bank of America Securities, Inc. | | | | | |
The accompanying notes are an integral part of these financial statements.
8 | Allspring Special Small Cap Value Fund
Portfolio of investments—September 30, 2024 (unaudited)
Written options (continued)
| | | | | | |
| | | | | | |
| Bank of America Securities, Inc. | | | | | |
| Bank of America Securities, Inc. | | | | | |
| | | | | | |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 9
Statement of assets and liabilities—September 30, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
Investments in unaffiliated securities, at value (cost $3,382,537,415) | |
Investments in affiliated securities, at value (cost $908,792,476) | |
Cash at broker segregated for written options | |
| |
Receivable for Fund shares sold | |
Receivable for investments sold | |
Prepaid expenses and other assets | |
| |
| |
Payable for Fund shares redeemed | |
Payable for investments purchased | |
| |
Overdraft due to custodian bank | |
Written options, at value (premiums received $553,975) | |
Administration fees payable | |
Shareholder servicing fee payable | |
Distribution fees payable | |
Accrued expenses and other liabilities | |
| |
| |
| |
| |
Total distributable earnings | |
| |
The accompanying notes are an integral part of these financial statements.
10 | Allspring Special Small Cap Value Fund
Statement of assets and liabilities—September 30, 2024 (unaudited)
Statement of assets and liabilities
Computation of net asset value and offering price per share | |
| |
Shares outstanding–Class A1 | |
Net asset value per share–Class A | |
Maximum offering price per share – Class A2 | |
| |
Shares outstanding–Class C1 | |
Net asset value per share–Class C | |
| |
Shares outstanding–Class R61 | |
Net asset value per share–Class R6 | |
Net assets–Administrator Class | |
Shares outstanding–Administrator Class1 | |
Net asset value per share–Administrator Class | |
Net assets–Institutional Class | |
Shares outstanding–Institutional Class1 | |
Net asset value per share–Institutional Class | |
1 The Fund has an unlimited number of authorized shares.
2 Maximum offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced.
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 11
Statement of operations—six months ended September 30, 2024 (unaudited)
Statement of operations
| |
Dividends (net of foreign withholdings taxes of $81,023) | |
Income from affiliated securities | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Shareholder servicing fees | |
| |
| |
| |
| |
| |
Custody and accounting fees | |
| |
| |
Shareholder report expenses | |
Trustees’ fees and expenses | |
| |
| |
| |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
| |
| |
| |
Net realized gains on investments | |
Net change in unrealized gains (losses) on | |
| |
| |
| |
Net change in unrealized gains (losses) on investments | |
Net realized and unrealized gains (losses) on investments | |
Net increase in net assets resulting from operations | |
The accompanying notes are an integral part of these financial statements.
12 | Allspring Special Small Cap Value Fund
Statement of changes in net assets
Statement of changes in net assets
|
Six months ended
September 30, 2024 (unaudited) | |
| | | | |
| | | | |
Net realized gains on investments | | | | |
Net change in unrealized gains (losses) on investments | | | | |
Net increase in net assets resulting from operations | | | | |
Distributions to shareholders from | | | | |
Net investment income and net realized gains | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributions to shareholders | | | | |
Capital share transactions | | | | |
Proceeds from shares sold | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Payment for shares redeemed | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
1 For the period from April 1, 2023 to June 16, 2023. Effective at the close of business on June 16, 2023, Class R shares were converted to Class A shares and are no longer offered by the Fund.
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 13
Statement of changes in net assets
Statement of changes in net assets
| Six months ended September 30, 2024 (unaudited) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Net decrease in net assets resulting from capital share transactions | | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| | | | |
2 Effective at the close of business on June 16, 2023, Class R shares were converted to Class A shares and are no longer offered by the Fund.
The accompanying notes are an integral part of these financial statements.
14 | Allspring Special Small Cap Value Fund
Financial highlights
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 15
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
Net investment income (loss) | | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Total return calculations do not include any sales charges. Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring Special Small Cap Value Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 17
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Allspring Special Small Cap Value Fund
(For a share outstanding throughout each period)
| Six months ended
September 30, 2024
(unaudited) | |
| | | | | |
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gains (losses) on investments | | | | | | |
Total from investment operations | | | | | | |
Distributions to shareholders from | | | | | | |
| | | | | | |
| | | | | | |
Total distributions to shareholders | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
Ratios to average net assets (annualized) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000s omitted) | | | | | | |
| Calculated based upon average shares outstanding |
| Returns include adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Allspring Special Small Cap Value Fund | 19
Notes to financial statements (unaudited)
Notes to financial statements
Allspring Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Special Small Cap Value Fund (the “Fund”) which is a diversified series of the Trust.
Effective at the close of business on June 16, 2023, Class R shares became Class A shares in a tax-free conversion. Shareholders of Class R received Class A shares at a value equal to the value of their Class R shares immediately prior to the conversion. Class R shares are no longer offered by the Fund.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities and exchange-traded funds that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.
Options that are listed on a foreign or domestic exchange or market are valued at the closing mid-price. Non-listed options are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies (other than those listed on a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC (“Allspring Funds Management”), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
The Fund may write covered call options or secured put options on individual securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market value of the written option. Premiums received from written options that expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.
The Fund may also purchase call or put options. Premiums paid are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the options are standardized. The Fund is subject to equity price risk. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
20 | Allspring Special Small Cap Value Fund
Notes to financial statements (unaudited)
Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
Interest earned on cash balances held at the custodian is recorded as interest income.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2024, the aggregate cost of all investments for federal income tax purposes was $4,334,959,907 and the unrealized gains (losses) consisted of:
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3.
FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Special Small Cap Value Fund | 21
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of September 30, 2024:
| | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| | | | |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At September 30, 2024, the Fund had no material transfers into/out of Level 3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Allspring Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Allspring Funds Management is entitled to receive a management fee, which is generally paid monthly, at the following annual rate based on the Fund’s average daily net assets:
For the six months ended September 30, 2024, the management fee was equivalent to an annual rate of 0.77% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.55% and declining to 0.40% as the average daily net assets of the Fund increase.
22 | Allspring Special Small Cap Value Fund
Notes to financial statements (unaudited)
Administration fees
Under a class-level administration agreement, Allspring Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class and generally paid monthly, as follows:
| Class-level
administration fee |
| |
| |
| |
| |
| |
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2025 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses. 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. As of September 30, 2024, the contractual caps are as follows:
The Trust has adopted a distribution plan for Class C shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC (“Allspring Funds Distributor”), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate up to 0.75% of the average daily net assets of Class C shares. Such fees are generally paid on a monthly basis.
In addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2024, Allspring Funds Distributor received $682 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six months ended September 30, 2024.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Administrator Class are charged a fee at an annual rate up to 0.25% of the average daily net assets of each respective class and are generally paid on a monthly basis. A portion of these total shareholder servicing fees were paid to affiliates of the Fund.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six months ended September 30, 2024.
5.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2024 were $552,585,507 and $859,327,560, respectively.
Allspring Special Small Cap Value Fund | 23
Notes to financial statements (unaudited)
6.
DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2024, the Fund entered into written options for hedging purposes. The Fund had an average of 4,876 written option contracts during six months ended September 30, 2024.
The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
For options contracts, the Fund has the right to use the collateral to offset any losses incurred. As of September 30, 2024, the Fund had written options contracts with the following counterparty which are subject to offset:
| Gross amounts
of liabilities in the
Statement of
Assets and
Liabilities | Amounts
subject to
netting
agreements | | |
Bank of America Securities, Inc. | | | | |
| Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty. |
The Trust (excluding the money market funds), Allspring Master Trust and Allspring Variable Trust are parties to a $275,000,000 (prior to July 9, 2024: $350,000,000), revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2024, there were no borrowings by the Fund under the agreement.
As of the end of the period, the Fund concentrated its portfolio of investments in the industrials sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
24 | Allspring Special Small Cap Value Fund
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Special Small Cap Value Fund | 25
Other information (unaudited)
Item 8. Changes in and disagreements with accountants
Item 9. Matters submitted to fund shareholders for a vote
Item 10. Remuneration paid to directors, officers and others
Refer to information in the Statement of operations.
26 | Allspring Special Small Cap Value Fund
Other information (unaudited)
Item 11. Statement regarding basis for the board’s approval of investment advisory contract
Board consideration of investment management and sub-advisory agreements:
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Allspring Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for the Allspring Special Small Cap Value Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent, and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the qualifications, background, tenure, and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory, and supervisory personnel.
The Board further considered the compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring Global Investments’ risk management functions, which included information about Allspring Funds
*
The trade name for the asset management firm that includes Allspring Funds Management and the Sub-Adviser is “Allspring Global Investments.”
Allspring Special Small Cap Value Fund | 27
Other information (unaudited)
Management’s and the Sub-Adviser’s business continuity plans, their approaches to data privacy and cybersecurity, Allspring Funds Management’s role as administrator of the Fund’s liquidity risk management program, and fair valuation designee. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight program.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods under review. The Board also noted that the investment performance of the Fund was higher than the investment performance of its benchmark index, the Russell 2000® Value Index, for all periods under review.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense Groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were equal to or in range of the median net operating expense ratios of the expense Groups for each share class, except the Administrator Class shares, which was higher than the median net operating expense ratio of the expense Group for that share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Allspring Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Allspring Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services. It was noted that advisory fee waivers, if any, are at the fund level and not class level.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were in range of the sum of these average rates for the Fund’s expense Groups for each share class, except the Administrator Class, which were higher than the average rates for the Fund’s expense Groups.
The Board also received and considered information about the portion of the total management fee that was retained by Allspring Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Allspring Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal and regulatory obligations and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Allspring Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
28 | Allspring Special Small Cap Value Fund
Other information (unaudited)
Allspring Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
The Board received and considered information about the potential for Allspring Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of isolating and quantifying economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Allspring Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that Allspring Funds Distributor, LLC, an affiliate of Allspring Funds Management, receives distribution-related fees in respect of shares sold or held through it. The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term.
Allspring Special Small Cap Value Fund | 29
For more information
More information about Allspring Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-800-260-5969
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
NCSRS0637 09-24
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Changes in and Disagreements with Accountants for Open-End Management Investment Companies are included as part of the Financial Statements filed under Item 7(a) of this Form.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Proxy Disclosures for Open-End Management Investment Companies are included as part of the Financial Statements filed under Item 7(a) of this Form.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES
Renumeration Paid to Directors, Officers, and Others of Open-End Investment Companies is included as part of the Financial Statements filed under Item 7(a) of this Form.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT
The registrant’s Statement Regarding Basis for Approval of Investment Advisory Contract is included as part of the Financial Statements filed under Item 7(a) of this Form.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
ITEM 16. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Allspring Funds Trust disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 17. DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
Not applicable.
ITEM 19. EXHIBITS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| Allspring Funds Trust |
| |
| By: | | /s/ Andrew Owen |
| | Andrew Owen |
| | President (Principal Executive Officer) |
|
| Date: November 25, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
| | |
| Allspring Funds Trust |
| |
| By: | | /s/ Andrew Owen |
| | Andrew Owen |
| | President (Principal Executive Officer) |
|
| Date: November 25, 2024 |
| |
| By: | | /s/Jeremy DePalma |
| | Jeremy DePalma |
| | Treasurer (Principal Financial Officer) |
|
| Date: November 25, 2024 |
