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: 811-09255
Allspring Variable Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: December 31
Registrant is making a filing for 6 of its series:
Allspring VT Discovery Fund, Allspring VT Index Asset Allocation Fund, Allspring VT International Equity Fund, Allspring VT Omega Growth Fund, Allspring VT Opportunity Fund and Allspring VT Small Cap Growth Fund.
Date of reporting period: June 30, 2022
| ITEM 1. | REPORT TO STOCKHOLDERS |
Semi-Annual Report
June 30, 2022
Allspring VT Discovery Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT Discovery Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT Discovery Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT Discovery Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT Discovery Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT Discovery Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael T. Smith, CFA®‡, Christopher J. Warner, CFA®‡ |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 2 | 5-8-1992 | -43.43 | 6.22 | 9.67 | 1.13 | 1.13 |
| Russell 2500™ Growth Index3 | – | -31.81 | 7.53 | 10.88 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectus. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.15% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. |
| 3 | The Russell 2500® Growth Index measures the performance of those Russell 2500 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring VT Discovery Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Teledyne Technologies Incorporated | 3.15 |
| Casella Waste Systems Incorporated Class A | 2.75 |
| WNS Holdings Limited ADR | 2.53 |
| Shockwave Medical Incorporated | 2.33 |
| Bio-Techne Corporation | 2.29 |
| Five9 Incorporated | 2.25 |
| Globant SA | 2.19 |
| Rexford Industrial Realty Incorporated | 2.14 |
| Novanta Incorporated | 2.12 |
| Axon Enterprise Incorporated | 2.03 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
Allspring VT Discovery Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 606.22 | $4.54 | 1.14% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.14 | $5.71 | 1.14% |
1 Expenses paid is equal to the annualized net expense ratio multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT Discovery Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Common stocks: 95.37% | | | | | |
| Communication services: 7.28% | | | | | |
| Entertainment: 2.62% | | | | | |
| Liberty Media Corporation † | | | | 20,200 | $ 1,282,094 |
| Roku Incorporated † | | | | 7,600 | 624,264 |
| Warner Music Group Corporation Class A | | | | 61,300 | 1,493,268 |
| | | | | | 3,399,626 |
| Interactive media & services: 4.66% | | | | | |
| Bumble Incorporated Class A † | | | | 72,400 | 2,038,060 |
| IAC/InterActiveCorp † | | | | 26,272 | 1,995,884 |
| ZoomInfo Technologies Incorporated † | | | | 60,900 | 2,024,316 |
| | | | | | 6,058,260 |
| Consumer discretionary: 10.65% | | | | | |
| Diversified consumer services: 1.14% | | | | | |
| Mister Car Wash Incorporated †« | | | | 136,230 | 1,482,182 |
| Hotels, restaurants & leisure: 4.62% | | | | | |
| Chipotle Mexican Grill Incorporated † | | | | 2,000 | 2,614,520 |
| Domino's Pizza Incorporated | | | | 2,794 | 1,088,850 |
| Hyatt Hotels Corporation Class A † | | | | 9,700 | 716,927 |
| Wingstop Incorporated | | | | 21,100 | 1,577,647 |
| | | | | | 5,997,944 |
| Internet & direct marketing retail: 2.54% | | | | | |
| Global-E Online Limited † | | | | 67,800 | 1,367,526 |
| MercadoLibre Incorporated † | | | | 3,043 | 1,937,995 |
| | | | | | 3,305,521 |
| Leisure products: 1.44% | | | | | |
| Callaway Golf Company † | | | | 91,910 | 1,874,964 |
| Textiles, apparel & luxury goods: 0.91% | | | | | |
| On Holding AG Class A †« | | | | 66,600 | 1,178,154 |
| Financials: 3.25% | | | | | |
| Banks: 0.58% | | | | | |
| Silvergate Capital Corporation Class A † | | | | 14,000 | 749,420 |
| Capital markets: 1.69% | | | | | |
| MarketAxess Holdings Incorporated | | | | 8,600 | 2,201,686 |
| Insurance: 0.98% | | | | | |
| Goosehead Insurance Incorporated Class A | | | | 27,746 | 1,267,160 |
| Health care: 24.00% | | | | | |
| Biotechnology: 3.35% | | | | | |
| Ascendis Pharma AS ADR † | | | | 10,448 | 971,246 |
| CRISPR Therapeutics AG †« | | | | 11,427 | 694,419 |
| Horizon Therapeutics plc † | | | | 10,700 | 853,432 |
| Mirati Therapeutics Incorporated † | | | | 10,500 | 704,865 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Discovery Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Biotechnology (continued) | | | | | |
| Sarepta Therapeutics Incorporated † | | | | 9,100 | $ 682,136 |
| Zentalis Pharmaceuticals Incorporated † | | | | 15,900 | 446,790 |
| | | | | | 4,352,888 |
| Health care equipment & supplies: 10.48% | | | | | |
| Abiomed Incorporated † | | | | 6,700 | 1,658,317 |
| DexCom Incorporated † | | | | 23,600 | 1,758,908 |
| Heska Corporation † | | | | 8,032 | 759,104 |
| ICU Medical Incorporated † | | | | 7,700 | 1,265,803 |
| Inari Medical Incorporated † | | | | 34,900 | 2,372,851 |
| Insulet Corporation † | | | | 8,199 | 1,786,890 |
| iRhythm Technologies Incorporated † | | | | 9,100 | 983,073 |
| Shockwave Medical Incorporated † | | | | 15,852 | 3,030,427 |
| | | | | | 13,615,373 |
| Health care providers & services: 3.14% | | | | | |
| Amedisys Incorporated † | | | | 17,454 | 1,834,764 |
| Option Care Health Incorporated † | | | | 80,900 | 2,248,211 |
| | | | | | 4,082,975 |
| Health care technology: 1.61% | | | | | |
| Inspire Medical Systems Incorporated † | | | | 11,400 | 2,082,438 |
| Life sciences tools & services: 5.42% | | | | | |
| Azenta Incorporated | | | | 28,200 | 2,033,220 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 4,100 | 2,029,500 |
| Bio-Techne Corporation | | | | 8,600 | 2,981,104 |
| | | | | | 7,043,824 |
| Industrials: 17.12% | | | | | |
| Aerospace & defense: 2.03% | | | | | |
| Axon Enterprise Incorporated † | | | | 28,300 | 2,636,711 |
| Building products: 2.72% | | | | | |
| Advanced Drainage Systems Incorporated | | | | 24,400 | 2,197,708 |
| Trex Company Incorporated † | | | | 24,400 | 1,327,848 |
| | | | | | 3,525,556 |
| Commercial services & supplies: 6.08% | | | | | |
| Casella Waste Systems Incorporated Class A † | | | | 49,119 | 3,569,969 |
| Rollins Incorporated | | | | 58,400 | 2,039,328 |
| Tetra Tech Incorporated | | | | 16,800 | 2,294,040 |
| | | | | | 7,903,337 |
| Electrical equipment: 1.44% | | | | | |
| Generac Holdings Incorporated † | | | | 8,900 | 1,874,162 |
| Professional services: 1.02% | | | | | |
| Clarivate plc † | | | | 95,111 | 1,318,238 |
| Road & rail: 1.95% | | | | | |
| Saia Incorporated † | | | | 13,500 | 2,538,000 |
| Trading companies & distributors: 1.88% | | | | | |
| SiteOne Landscape Supply Incorporated † | | | | 20,561 | 2,444,086 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT Discovery Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Information technology: 29.09% | | | | | |
| Electronic equipment, instruments & components: 6.40% | | | | | |
| Cognex Corporation | | | | 34,600 | $ 1,471,192 |
| Novanta Incorporated † | | | | 22,700 | 2,752,829 |
| Teledyne Technologies Incorporated † | | | | 10,900 | 4,088,699 |
| | | | | | 8,312,720 |
| IT services: 7.86% | | | | | |
| Globant SA † | | | | 16,400 | 2,853,600 |
| Marqeta Incorporated Class A † | | | | 131,300 | 1,064,843 |
| MongoDB Incorporated † | | | | 9,500 | 2,465,250 |
| StoneCo Limited Class A † | | | | 70,619 | 543,766 |
| WNS Holdings Limited ADR † | | | | 44,000 | 3,284,162 |
| | | | | | 10,211,621 |
| Semiconductors & semiconductor equipment: 3.96% | | | | | |
| Enphase Energy Incorporated † | | | | 13,300 | 2,596,692 |
| Impinj Incorporated † | | | | 27,800 | 1,631,026 |
| MKS Instruments Incorporated | | | | 8,900 | 913,407 |
| | | | | | 5,141,125 |
| Software: 10.87% | | | | | |
| Bill.com Holdings Incorporated † | | | | 22,066 | 2,425,936 |
| Black Knight Incorporated † | | | | 19,400 | 1,268,566 |
| CCC Intelligent Solutions † | | | | 115,700 | 1,064,440 |
| Crowdstrike Holdings Incorporated Class A † | | | | 14,100 | 2,376,696 |
| Five9 Incorporated † | | | | 32,100 | 2,925,594 |
| HubSpot Incorporated † | | | | 4,700 | 1,413,055 |
| Lightspeed Commerce Incorporated †« | | | | 60,800 | 1,355,840 |
| Olo Incorporated Class A † | | | | 131,600 | 1,298,892 |
| | | | | | 14,129,019 |
| Real estate: 3.98% | | | | | |
| Equity REITs: 3.98% | | | | | |
| Equity Lifestyle Properties Incorporated | | | | 33,945 | 2,392,104 |
| Rexford Industrial Realty Incorporated | | | | 48,400 | 2,787,356 |
| | | | | | 5,179,460 |
| Total Common stocks (Cost $150,516,318) | | | | | 123,906,450 |
| | | Yield | | | |
| Short-term investments: 7.05% | | | | | |
| Investment companies: 7.05% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | 5,941,418 | 5,941,418 |
| Securities Lending Cash Investments LLC ♠∩∞ | | 1.56 | | 3,211,925 | 3,211,925 |
| Total Short-term investments (Cost $9,153,343) | | | | | 9,153,343 |
| Total investments in securities (Cost $159,669,661) | 102.42% | | | | 133,059,793 |
| Other assets and liabilities, net | (2.42) | | | | (3,143,484) |
| Total net assets | 100.00% | | | | $129,916,309 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Discovery Fund | 11
Portfolio of investments—June 30, 2022 (unaudited)
| † | Non-income-earning security |
| « | All or a portion of this security is on loan. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| ADR | American depositary receipt |
| REIT | Real estate investment trust |
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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $ 2,530,623 | $21,752,013 | $(18,341,218) | $0 | | $0 | | $ 5,941,418 | 5,941,418 | $ 7,226 |
| Securities Lending Cash Investments LLC | 11,352,850 | 23,409,290 | (31,550,215) | 0 | | 0 | | 3,211,925 | 3,211,925 | 4,915 # |
| | | | | $0 | | $0 | | $9,153,343 | | $12,141 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT Discovery Fund
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities (including $3,125,234 of securities loaned), at value (cost $150,516,318)
| $ 123,906,450 |
Investments in affiliated securities, at value (cost $9,153,343)
| 9,153,343 |
Receivable for investments sold
| 444,884 |
Receivable for Fund shares sold
| 128,212 |
Receivable for dividends
| 33,371 |
Receivable for securities lending income, net
| 1,342 |
Prepaid expenses and other assets
| 1,891 |
Total assets
| 133,669,493 |
| Liabilities | |
Payable upon receipt of securities loaned
| 3,211,925 |
Payable for investments purchased
| 357,492 |
Management fee payable
| 80,110 |
Payable for Fund shares redeemed
| 34,184 |
Distribution fee payable
| 27,211 |
Administration fee payable
| 8,751 |
Trustees’ fees and expenses payable
| 2,317 |
Accrued expenses and other liabilities
| 31,194 |
Total liabilities
| 3,753,184 |
Total net assets
| $129,916,309 |
| Net assets consist of | |
Paid-in capital
| $ 106,550,957 |
Total distributable earnings
| 23,365,352 |
Total net assets
| $129,916,309 |
| Computation of net asset value per share | |
Net assets – Class 2
| $ 129,916,309 |
Share outstanding – Class 21
| 5,013,661 |
Net asset value per share – Class 2
| $25.91 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Discovery Fund | 13
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends
| $ 109,334 |
Securities lending income (including from affiliate), net
| 7,989 |
Income from affiliated securities
| 7,226 |
Total investment income
| 124,549 |
| Expenses | |
Management fee
| 591,979 |
Administration fee – Class 2
| 63,144 |
Distribution fee – Class 2
| 191,418 |
Custody and accounting fees
| 10,678 |
Professional fees
| 23,337 |
Shareholder report expenses
| 14,518 |
Trustees’ fees and expenses
| 10,122 |
Other fees and expenses
| 2,654 |
Total expenses
| 907,850 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (5,234) |
Net expenses
| 902,616 |
Net investment loss
| (778,067) |
| Realized and unrealized gains (losses) on investments | |
Net realized losses on investments
| (240,911) |
Net change in unrealized gains (losses) on investments
| (84,928,744) |
Net realized and unrealized gains (losses) on investments
| (85,169,655) |
Net decrease in net assets resulting from operations
| $(85,947,722) |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT Discovery Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment loss
| | $ (778,067) | | $ (2,490,339) |
Net realized gains (losses) on investments
| | (240,911) | | 51,123,731 |
Net change in unrealized gains (losses) on investments
| | (84,928,744) | | (60,409,976) |
Net decrease in net assets resulting from operations
| | (85,947,722) | | (11,776,584) |
| Distributions to shareholders from | | | | |
Net investment income and net realized gains – Class 2
| | 0 | | (17,942,862) |
| Capital share transactions | Shares | | Shares | |
Proceeds from shares sold – Class 2
| 266,127 | 8,446,166 | 455,338 | 21,604,014 |
Reinvestment of distributions – Class 2
| 0 | 0 | 410,216 | 17,942,862 |
Payment for shares redeemed – Class 2
| (418,964) | (13,405,015) | (952,059) | (44,958,194) |
Net decrease in net assets resulting from capital share transactions
| | (4,958,849) | | (5,411,318) |
Total decrease in net assets
| | (90,906,571) | | (35,130,764) |
| Net assets | | | | |
Beginning of period
| | 220,822,880 | | 255,953,644 |
End of period
| | $129,916,309 | | $220,822,880 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Discovery Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $42.74 | $48.73 | $32.85 | $26.14 | $31.74 | $25.91 |
Net investment loss
| (0.16) | (0.48) | (0.34) | (0.25) | (0.17) | (0.20) |
Net realized and unrealized gains (losses) on investments
| (16.67) | (1.89) | 19.54 | 10.47 | (1.39) | 7.60 |
Total from investment operations
| (16.83) | (2.37) | 19.20 | 10.22 | (1.56) | 7.40 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (3.62) | (3.32) | (3.51) | (4.04) | (1.57) |
Net asset value, end of period
| $25.91 | $42.74 | $48.73 | $32.85 | $26.14 | $31.74 |
Total return1
| (39.38)% | (5.04)% | 62.65% | 39.02% | (7.06)% | 29.13% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.15% | 1.13% | 1.14% | 1.16% | 1.16% | 1.16% |
Net expenses
| 1.14% | 1.13% | 1.14% | 1.15% | 1.15% | 1.15% |
Net investment loss
| (0.99)% | (1.03)% | (0.93)% | (0.79)% | (0.55)% | (0.68)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 24% | 57% | 47% | 71% | 60% | 75% |
Net assets, end of period (000s omitted)
| $129,916 | $220,823 | $255,954 | $168,489 | $125,806 | $145,175 |
| 1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT Discovery Fund
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT Discovery Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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 are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund, if any, is included in securities lending income (including from affiliate) (net of fees and rebates) on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or
Allspring VT Discovery Fund | 17
Notes to financial statements (unaudited)
costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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 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. generally accepted accounting principles. 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.
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 June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $159,010,644 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 15,867,399 |
| Gross unrealized losses | (41,818,250) |
| Net unrealized losses | $(25,950,851) |
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.
18 | Allspring VT Discovery 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 June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 9,457,886 | $0 | $0 | $ 9,457,886 |
| Consumer discretionary | 13,838,765 | 0 | 0 | 13,838,765 |
| Financials | 4,218,266 | 0 | 0 | 4,218,266 |
| Health care | 31,177,498 | 0 | 0 | 31,177,498 |
| Industrials | 22,240,090 | 0 | 0 | 22,240,090 |
| Information technology | 37,794,485 | 0 | 0 | 37,794,485 |
| Real estate | 5,179,460 | 0 | 0 | 5,179,460 |
| Short-term investments | | | | |
| Investment companies | 9,153,343 | 0 | 0 | 9,153,343 |
| Total assets | $133,059,793 | $0 | $0 | $133,059,793 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.750% |
| Next $500 million | 0.700 |
| Next $1 billion | 0.650 |
| Next $2 billion | 0.625 |
| Next $1 billion | 0.600 |
| Next $5 billion | 0.590 |
| Over $10 billion | 0.580 |
For the six months ended June 30, 2022, the management fee was equivalent to an annual rate of 0.75% 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 ("Allspring Investments"), 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 0.35% as the average daily net assets of the Fund increase.
Allspring VT Discovery Fund | 19
Notes to financial statements (unaudited)
Administration fee
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 of 0.08% which is calculated based on the average daily net assets of Class 2 shares.
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed through April 30, 2023 to waive fees and/or reimburse management and administration fees to the extent necessary to cap the Fund’s expenses at 1.15% for Class 2 shares. 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.
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
Interfund transactions
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.
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 June 30, 2022 were $39,156,569 and $49,358,666, respectively.
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund had securities lending transactions with the following counterparties which are subject to offset:
| Counterparty | Value of
securities on
loan | Collateral
received1 | Net amount |
| BNP Paribas Securities Corporation | $816,102 | $(816,102) | 0 |
| JPMorgan Securities LLC | 911,540 | (911,540) | 0 |
| Morgan Stanley & Co. LLC | 764,556 | (764,556) | 0 |
| UBS AG | 633,036 | (633,036) | 0 |
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $350,000,000 revolving credit agreement whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such
20 | Allspring VT Discovery Fund
Notes to financial statements (unaudited)
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 in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the information technology and healthcare 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.
9. INDEMNIFICATION
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.
10. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Allspring VT Discovery Fund | 21
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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.
22 | Allspring VT Discovery Fund
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Allspring VT Discovery Fund | 23
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
24 | Allspring VT Discovery Fund
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Allspring VT Discovery Fund | 25
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
26 | Allspring VT Discovery 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: 1-800-260-5969
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00680 08-22
SVT1/SAR138 06-22
Semi-Annual Report
June 30, 2022
Allspring
VT Index Asset Allocation Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT Index Asset Allocation Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT Index Asset Allocation Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT Index Asset Allocation Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT Index Asset Allocation Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT Index Asset Allocation Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term total return, consisting of capital appreciation and current income. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Kandarp R. Acharya, CFA®, FRM‡, Manjunath Boraiah†, Petros N. Bocray, CFA®, FRM‡, John R. Campbell, CFA®‡†, Travis L. Keshemberg, CFA®, CIPM, FRM‡#, David Neal, CFA®‡†, Nick Toporkov, Ph.D., CFA®‡†, Robert M. Wicentowski, CFA®‡†, Limin Xiao, Ph.D., CFA®‡† |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 2 | 4-15-1994 | -10.63 | 6.97 | 9.00 | 1.13 | 1.00 |
| Index Asset Allocation Blended Index3 | – | -9.66 | 7.38 | 8.74 | – | – |
| Bloomberg U.S. Treasury Index4 | – | -8.90 | 0.74 | 1.01 | – | – |
| S&P 500 Index5 | – | -10.62 | 11.31 | 12.96 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectus. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.00% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense 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. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. |
| 3 | Source: Allspring Funds Management, LLC. Index Asset Allocation Blended Index is composed 60% of the S&P 500 Index and 40% of the Bloomberg U.S. Treasury Index. Prior to April 1, 2015, the Index Asset Allocation Blended Index was composed 60% of the S&P 500 Index and 40% of the Bloomberg U.S. Treasury 20+ Year Index. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index. |
| 5 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
Balanced funds may invest in stocks and bonds. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
| # | Mr. Keshemberg became a portfolio manager of the Fund on March 24, 2022. |
| † | Mr. Boraiah, Mr Campbell, Mr. Neal, Mr. Toporkov, Mr. Wicentowski and Ms. Xiao became portfolio managers of the Fund on June 10, 2022. |
6 | Allspring VT Index Asset Allocation Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Apple Incorporated | 3.88 |
| Microsoft Corporation | 3.54 |
| Amazon.com Incorporated | 1.71 |
| Alphabet Incorporated Class A | 1.21 |
| Alphabet Incorporated Class C | 1.11 |
| Tesla Motors Incorporated | 1.04 |
| Berkshire Hathaway Incorporated Class B | 0.91 |
| UnitedHealth Group Incorporated | 0.89 |
| Johnson & Johnson | 0.86 |
| NVIDIA Corporation | 0.70 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
| Allocation (%) as of June 30, 2022 |
| | Neutral
allocation | Effective
allocation1 |
| Stocks | 60 | 54 |
| Bonds | 40 | 50 |
| Effective Cash | 0 | (4) |
| 1 | Effective allocation reflects the effect of the tactical futures overlay that may be in place. Effective cash, if any, represents the net offset to such future positions. Effective allocations are subject to change and may have changed since the date specified. |
Allspring VT Index Asset Allocation Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 834.63 | $4.55 | 1.00% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
1 Expenses paid is equal to the annualized net expense ratio multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Common stocks: 58.83% | | | | | |
| Communication services: 5.22% | | | | | |
| Diversified telecommunication services: 0.69% | | | | | |
| AT&T Incorporated | | | | 8,671 | $ 181,744 |
| Lumen Technologies Incorporated | | | | 1,126 | 12,285 |
| Verizon Communications Incorporated | | | | 5,087 | 258,165 |
| | | | | | 452,194 |
| Entertainment: 0.75% | | | | | |
| Activision Blizzard Incorporated | | | | 947 | 73,733 |
| Electronic Arts Incorporated | | | | 341 | 41,483 |
| Live Nation Entertainment Incorporated † | | | | 166 | 13,708 |
| Netflix Incorporated † | | | | 538 | 94,080 |
| Take-Two Interactive Software Incorporated † | | | | 191 | 23,403 |
| The Walt Disney Company † | | | | 2,206 | 208,246 |
| Warner Bros. Discovery Incorporated † | | | | 2,675 | 35,899 |
| | | | | | 490,552 |
| Interactive media & services: 3.09% | | | | | |
| Alphabet Incorporated Class A † | | | | 364 | 793,251 |
| Alphabet Incorporated Class C † | | | | 334 | 730,608 |
| Match Group Incorporated † | | | | 346 | 24,113 |
| Meta Platforms Incorporated Class A † | | | | 2,778 | 447,953 |
| Twitter Incorporated † | | | | 924 | 34,548 |
| | | | | | 2,030,473 |
| Media: 0.54% | | | | | |
| Charter Communications Incorporated Class A † | | | | 140 | 65,594 |
| Comcast Corporation Class A | | | | 5,415 | 212,485 |
| DISH Network Corporation Class A † | | | | 304 | 5,451 |
| Fox Corporation Class A | | | | 378 | 12,156 |
| Fox Corporation Class B | | | | 175 | 5,198 |
| Interpublic Group of Companies Incorporated | | | | 477 | 13,132 |
| News Corporation Class A | | | | 471 | 7,338 |
| News Corporation Class B | | | | 146 | 2,320 |
| Omnicom Group Incorporated | | | | 249 | 15,839 |
| ViacomCBS Incorporated Class B | | | | 737 | 18,189 |
| | | | | | 357,702 |
| Wireless telecommunication services: 0.15% | | | | | |
| T-Mobile US Incorporated † | | | | 714 | 96,062 |
| Consumer discretionary: 6.20% | | | | | |
| Auto components: 0.06% | | | | | |
| Aptiv plc † | | | | 328 | 29,215 |
| BorgWarner Incorporated | | | | 290 | 9,677 |
| | | | | | 38,892 |
| Automobiles: 1.21% | | | | | |
| Ford Motor Company | | | | 4,783 | 53,235 |
| General Motors Company † | | | | 1,766 | 56,088 |
| Tesla Motors Incorporated † | | | | 1,016 | 684,195 |
| | | | | | 793,518 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Distributors: 0.09% | | | | | |
| Genuine Parts Company | | | | 171 | $ 22,743 |
| LKQ Corporation | | | | 315 | 15,463 |
| Pool Corporation | | | | 49 | 17,210 |
| | | | | | 55,416 |
| Hotels, restaurants & leisure: 1.07% | | | | | |
| Booking Holdings Incorporated † | | | | 49 | 85,701 |
| Caesars Entertainment Incorporated † | | | | 260 | 9,958 |
| Carnival Corporation † | | | | 983 | 8,503 |
| Chipotle Mexican Grill Incorporated † | | | | 34 | 44,447 |
| Darden Restaurants Incorporated | | | | 151 | 17,081 |
| Domino's Pizza Incorporated | | | | 44 | 17,147 |
| Expedia Group Incorporated † | | | | 184 | 17,449 |
| Hilton Worldwide Holdings Incorporated | | | | 337 | 37,555 |
| Las Vegas Sands Corporation † | | | | 416 | 13,973 |
| Marriott International Incorporated Class A | | | | 333 | 45,291 |
| McDonald's Corporation | | | | 896 | 221,204 |
| MGM Resorts International | | | | 428 | 12,391 |
| Norwegian Cruise Line Holdings Limited † | | | | 508 | 5,649 |
| Penn National Gaming Incorporated † | | | | 198 | 6,023 |
| Royal Caribbean Cruises Limited † | | | | 272 | 9,496 |
| Starbucks Corporation | | | | 1,389 | 106,106 |
| Wynn Resorts Limited † | | | | 128 | 7,293 |
| Yum! Brands Incorporated | | | | 345 | 39,161 |
| | | | | | 704,428 |
| Household durables: 0.18% | | | | | |
| D.R. Horton Incorporated | | | | 388 | 25,682 |
| Garmin Limited | | | | 185 | 18,176 |
| Lennar Corporation Class A | | | | 313 | 22,088 |
| Mohawk Industries Incorporated † | | | | 62 | 7,694 |
| Newell Rubbermaid Incorporated | | | | 446 | 8,492 |
| NVR Incorporated † | | | | 4 | 16,017 |
| PulteGroup Incorporated | | | | 288 | 11,413 |
| Whirlpool Corporation | | | | 68 | 10,531 |
| | | | | | 120,093 |
| Internet & direct marketing retail: 1.77% | | | | | |
| Amazon.com Incorporated † | | | | 10,598 | 1,125,614 |
| eBay Incorporated | | | | 678 | 28,252 |
| Etsy Incorporated † | | | | 154 | 11,274 |
| | | | | | 1,165,140 |
| Leisure products: 0.02% | | | | | |
| Hasbro Incorporated | | | | 159 | 13,019 |
| Multiline retail: 0.29% | | | | | |
| Dollar General Corporation | | | | 277 | 67,987 |
| Dollar Tree Incorporated † | | | | 273 | 42,547 |
| Target Corporation | | | | 560 | 79,089 |
| | | | | | 189,623 |
| Specialty retail: 1.22% | | | | | |
| Advance Auto Parts Incorporated | | | | 74 | 12,809 |
| AutoZone Incorporated † | | | | 24 | 51,579 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Specialty retail (continued) | | | | | |
| Bath & Body Works Incorporated | | | | 289 | $ 7,780 |
| Best Buy Company Incorporated | | | | 245 | 15,972 |
| CarMax Incorporated † | | | | 194 | 17,553 |
| Lowe's Companies Incorporated | | | | 801 | 139,911 |
| O'Reilly Automotive Incorporated † | | | | 80 | 50,541 |
| Ross Stores Incorporated | | | | 426 | 29,918 |
| The Home Depot Incorporated | | | | 1,252 | 343,386 |
| The TJX Companies Incorporated | | | | 1,422 | 79,419 |
| Tractor Supply Company | | | | 136 | 26,364 |
| Ulta Beauty Incorporated † | | | | 63 | 24,285 |
| | | | | | 799,517 |
| Textiles, apparel & luxury goods: 0.29% | | | | | |
| Nike Incorporated Class B | | | | 1,537 | 157,081 |
| PVH Corporation | | | | 82 | 4,666 |
| Ralph Lauren Corporation | | | | 56 | 5,020 |
| Tapestry Incorporated | | | | 305 | 9,309 |
| VF Corporation | | | | 391 | 17,270 |
| | | | | | 193,346 |
| Consumer staples: 4.11% | | | | | |
| Beverages: 1.10% | | | | | |
| Brown-Forman Corporation Class B | | | | 221 | 15,505 |
| Constellation Brands Incorporated Class A | | | | 197 | 45,913 |
| Keurig Dr. Pepper Incorporated | | | | 893 | 31,603 |
| Molson Coors Brewing Company Class B | | | | 228 | 12,428 |
| Monster Beverage Corporation † | | | | 455 | 42,179 |
| PepsiCo Incorporated | | | | 1,675 | 279,156 |
| The Coca-Cola Company | | | | 4,725 | 297,250 |
| | | | | | 724,034 |
| Food & staples retailing: 0.89% | | | | | |
| Costco Wholesale Corporation | | | | 537 | 257,373 |
| Sysco Corporation | | | | 617 | 52,266 |
| The Kroger Company | | | | 795 | 37,627 |
| Walgreens Boots Alliance Incorporated | | | | 868 | 32,897 |
| Walmart Incorporated | | | | 1,700 | 206,686 |
| | | | | | 586,849 |
| Food products: 0.67% | | | | | |
| Archer Daniels Midland Company | | | | 682 | 52,923 |
| Campbell Soup Company | | | | 245 | 11,772 |
| ConAgra Foods Incorporated | | | | 581 | 19,893 |
| General Mills Incorporated | | | | 729 | 55,003 |
| Hormel Foods Corporation | | | | 343 | 16,244 |
| Kellogg Company | | | | 307 | 21,901 |
| Lamb Weston Holdings Incorporated | | | | 175 | 12,506 |
| McCormick & Company Incorporated | | | | 303 | 25,225 |
| Mondelez International Incorporated Class A | | | | 1,676 | 104,063 |
| The Hershey Company | | | | 177 | 38,083 |
| The J.M. Smucker Company | | | | 131 | 16,769 |
| The Kraft Heinz Company | | | | 860 | 32,800 |
| Tyson Foods Incorporated Class A | | | | 353 | 30,379 |
| | | | | | 437,561 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 11
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Household products: 0.92% | | | | | |
| Church & Dwight Company Incorporated | | | | 294 | $ 27,242 |
| Colgate-Palmolive Company | | | | 1,015 | 81,342 |
| Kimberly-Clark Corporation | | | | 408 | 55,141 |
| The Clorox Company | | | | 149 | 21,006 |
| The Procter & Gamble Company | | | | 2,906 | 417,854 |
| | | | | | 602,585 |
| Personal products: 0.11% | | | | | |
| The Estee Lauder Companies Incorporated Class A | | | | 281 | 71,562 |
| Tobacco: 0.42% | | | | | |
| Altria Group Incorporated | | | | 2,193 | 91,602 |
| Philip Morris International Incorporated | | | | 1,877 | 185,335 |
| | | | | | 276,937 |
| Energy: 2.56% | | | | | |
| Energy equipment & services: 0.19% | | | | | |
| Baker Hughes Incorporated | | | | 1,133 | 32,710 |
| Halliburton Company | | | | 1,092 | 34,245 |
| Schlumberger Limited | | | | 1,712 | 61,221 |
| | | | | | 128,176 |
| Oil, gas & consumable fuels: 2.37% | | | | | |
| APA Corporation | | | | 410 | 14,309 |
| Chevron Corporation | | | | 2,380 | 344,576 |
| ConocoPhillips | | | | 1,567 | 140,732 |
| Coterra Energy Incorporated | | | | 976 | 25,171 |
| Devon Energy Corporation | | | | 743 | 40,947 |
| Diamondback Energy Incorporated | | | | 202 | 24,472 |
| EOG Resources Incorporated | | | | 709 | 78,302 |
| Exxon Mobil Corporation | | | | 5,102 | 436,935 |
| Hess Corporation | | | | 336 | 35,596 |
| Kinder Morgan Incorporated | | | | 2,362 | 39,587 |
| Marathon Oil Corporation | | | | 857 | 19,265 |
| Marathon Petroleum Corporation | | | | 655 | 53,848 |
| Occidental Petroleum Corporation | | | | 1,078 | 63,473 |
| ONEOK Incorporated | | | | 541 | 30,026 |
| Phillips 66 | | | | 583 | 47,800 |
| Pioneer Natural Resources Company | | | | 273 | 60,901 |
| The Williams Companies Incorporated | | | | 1,475 | 46,035 |
| Valero Energy Corporation | | | | 494 | 52,502 |
| | | | | | 1,554,477 |
| Financials: 6.38% | | | | | |
| Banks: 2.17% | | | | | |
| Bank of America Corporation | | | | 8,587 | 267,313 |
| Citigroup Incorporated | | | | 2,352 | 108,168 |
| Citizens Financial Group Incorporated | | | | 594 | 21,200 |
| Comerica Incorporated | | | | 158 | 11,594 |
| Fifth Third Bancorp | | | | 831 | 27,922 |
| First Republic Bank | | | | 217 | 31,291 |
| Huntington Bancshares Incorporated | | | | 1,743 | 20,968 |
| JPMorgan Chase & Company | | | | 3,557 | 400,554 |
| KeyCorp | | | | 1,129 | 19,453 |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Banks (continued) | | | | | |
| M&T Bank Corporation | | | | 217 | $ 34,588 |
| PNC Financial Services Group Incorporated | | | | 501 | 79,043 |
| Regions Financial Corporation | | | | 1,132 | 21,225 |
| Signature Bank | | | | 76 | 13,620 |
| SVB Financial Group † | | | | 71 | 28,044 |
| Truist Financial Corporation | | | | 1,613 | 76,505 |
| US Bancorp | | | | 1,638 | 75,381 |
| Wells Fargo & Company | | | | 4,591 | 179,829 |
| Zions Bancorporation | | | | 183 | 9,315 |
| | | | | | 1,426,013 |
| Capital markets: 1.70% | | | | | |
| Ameriprise Financial Incorporated | | | | 133 | 31,611 |
| Bank of New York Mellon Corporation | | | | 900 | 37,539 |
| BlackRock Incorporated | | | | 172 | 104,755 |
| Cboe Global Markets Incorporated | | | | 129 | 14,602 |
| CME Group Incorporated | | | | 435 | 89,045 |
| FactSet Research Systems Incorporated | | | | 46 | 17,690 |
| Franklin Resources Incorporated | | | | 339 | 7,902 |
| Intercontinental Exchange Incorporated | | | | 676 | 63,571 |
| Invesco Limited | | | | 408 | 6,581 |
| MarketAxess Holdings Incorporated | | | | 46 | 11,776 |
| Moody's Corporation | | | | 194 | 52,762 |
| Morgan Stanley | | | | 1,695 | 128,922 |
| MSCI Incorporated | | | | 98 | 40,391 |
| Northern Trust Corporation | | | | 252 | 24,313 |
| Raymond James Financial Incorporated | | | | 235 | 21,011 |
| S&P Global Incorporated | | | | 420 | 141,565 |
| State Street Corporation | | | | 445 | 27,434 |
| T. Rowe Price Group Incorporated | | | | 275 | 31,243 |
| The Charles Schwab Corporation | | | | 1,827 | 115,430 |
| The Goldman Sachs Group Incorporated | | | | 416 | 123,560 |
| The NASDAQ Incorporated | | | | 140 | 21,356 |
| | | | | | 1,113,059 |
| Consumer finance: 0.31% | | | | | |
| American Express Company | | | | 739 | 102,440 |
| Capital One Financial Corporation | | | | 476 | 49,594 |
| Discover Financial Services | | | | 340 | 32,157 |
| Synchrony Financial | | | | 607 | 16,765 |
| | | | | | 200,956 |
| Diversified financial services: 0.91% | | | | | |
| Berkshire Hathaway Incorporated Class B † | | | | 2,191 | 598,187 |
| Insurance: 1.29% | | | | | |
| AFLAC Incorporated | | | | 718 | 39,727 |
| American International Group Incorporated | | | | 959 | 49,034 |
| Aon plc Class A | | | | 257 | 69,308 |
| Arthur J. Gallagher & Company | | | | 254 | 41,412 |
| Assurant Incorporated | | | | 66 | 11,408 |
| Brown & Brown Incorporated | | | | 284 | 16,569 |
| Chubb Limited | | | | 513 | 100,846 |
| Cincinnati Financial Corporation | | | | 181 | 21,535 |
| Everest Reinsurance Group Limited | | | | 48 | 13,453 |
| Globe Life Incorporated | | | | 110 | 10,722 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 13
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Insurance (continued) | | | | | |
| Lincoln National Corporation | | | | 196 | $ 9,167 |
| Loews Corporation | | | | 235 | 13,926 |
| Marsh & McLennan Companies Incorporated | | | | 608 | 94,392 |
| MetLife Incorporated | | | | 837 | 52,555 |
| Principal Financial Group Incorporated | | | | 285 | 19,035 |
| Progressive Corporation | | | | 708 | 82,319 |
| Prudential Financial Incorporated | | | | 454 | 43,439 |
| The Allstate Corporation | | | | 333 | 42,201 |
| The Hartford Financial Services Group Incorporated | | | | 398 | 26,041 |
| The Travelers Companies Incorporated | | | | 291 | 49,217 |
| W.R. Berkley Corporation | | | | 254 | 17,338 |
| Willis Towers Watson plc | | | | 135 | 26,648 |
| | | | | | 850,292 |
| Health care: 8.91% | | | | | |
| Biotechnology: 1.31% | | | | | |
| AbbVie Incorporated | | | | 2,140 | 327,762 |
| Amgen Incorporated | | | | 647 | 157,415 |
| Biogen Incorporated † | | | | 177 | 36,097 |
| Gilead Sciences Incorporated | | | | 1,519 | 93,889 |
| Incyte Corporation † | | | | 228 | 17,321 |
| Moderna Incorporated † | | | | 419 | 59,854 |
| Regeneron Pharmaceuticals Incorporated † | | | | 131 | 77,438 |
| Vertex Pharmaceuticals Incorporated † | | | | 310 | 87,355 |
| | | | | | 857,131 |
| Health care equipment & supplies: 1.62% | | | | | |
| Abbott Laboratories | | | | 2,121 | 230,447 |
| Abiomed Incorporated † | | | | 55 | 13,613 |
| Align Technology Incorporated † | | | | 89 | 21,064 |
| Baxter International Incorporated | | | | 610 | 39,180 |
| Becton Dickinson & Company | | | | 345 | 85,053 |
| Boston Scientific Corporation † | | | | 1,731 | 64,514 |
| Dentsply Sirona Incorporated | | | | 261 | 9,326 |
| DexCom Incorporated † | | | | 475 | 35,402 |
| Edwards Lifesciences Corporation † | | | | 753 | 71,603 |
| Hologic Incorporated † | | | | 302 | 20,929 |
| IDEXX Laboratories Incorporated † | | | | 102 | 35,774 |
| Intuitive Surgical Incorporated † | | | | 435 | 87,309 |
| Medtronic plc | | | | 1,625 | 145,844 |
| ResMed Incorporated | | | | 177 | 37,105 |
| STERIS plc | | | | 121 | 24,944 |
| Stryker Corporation | | | | 408 | 81,163 |
| Teleflex Incorporated | | | | 57 | 14,013 |
| The Cooper Companies Incorporated | | | | 60 | 18,787 |
| Zimmer Biomet Holdings Incorporated | | | | 254 | 26,685 |
| | | | | | 1,062,755 |
| Health care providers & services: 2.04% | | | | | |
| AmerisourceBergen Corporation | | | | 183 | 25,891 |
| Anthem Incorporated | | | | 292 | 140,913 |
| Cardinal Health Incorporated | | | | 330 | 17,249 |
| Centene Corporation † | | | | 708 | 59,904 |
| Cigna Corporation | | | | 384 | 101,192 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Health care providers & services (continued) | | | | | |
| CVS Health Corporation | | | | 1,588 | $ 147,144 |
| DaVita HealthCare Partners Incorporated † | | | | 73 | 5,837 |
| HCA Healthcare Incorporated | | | | 276 | 46,385 |
| Henry Schein Incorporated † | | | | 167 | 12,816 |
| Humana Incorporated | | | | 153 | 71,615 |
| Laboratory Corporation of America Holdings | | | | 112 | 26,248 |
| McKesson Corporation | | | | 176 | 57,413 |
| Molina Healthcare Incorporated † | | | | 71 | 19,852 |
| Quest Diagnostics Incorporated | | | | 142 | 18,883 |
| UnitedHealth Group Incorporated | | | | 1,136 | 583,484 |
| Universal Health Services Incorporated Class B | | | | 81 | 8,158 |
| | | | | | 1,342,984 |
| Life sciences tools & services: 1.11% | | | | | |
| Agilent Technologies Incorporated | | | | 363 | 43,114 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 26 | 12,870 |
| Bio-Techne Corporation | | | | 48 | 16,639 |
| Charles River Laboratories International Incorporated † | | | | 62 | 13,266 |
| Danaher Corporation | | | | 784 | 198,760 |
| Illumina Incorporated † | | | | 190 | 35,028 |
| IQVIA Holdings Incorporated † | | | | 229 | 49,691 |
| Mettler-Toledo International Incorporated † | | | | 27 | 31,017 |
| PerkinElmer Incorporated | | | | 153 | 21,760 |
| Thermo Fisher Scientific Incorporated | | | | 474 | 257,515 |
| Waters Corporation † | | | | 73 | 24,162 |
| West Pharmaceutical Services Incorporated | | | | 90 | 27,213 |
| | | | | | 731,035 |
| Pharmaceuticals: 2.83% | | | | | |
| Bristol-Myers Squibb Company | | | | 2,579 | 198,583 |
| Catalent Incorporated † | | | | 217 | 23,282 |
| Eli Lilly & Company | | | | 955 | 309,640 |
| Johnson & Johnson | | | | 3,187 | 565,724 |
| Merck & Company Incorporated | | | | 3,063 | 279,254 |
| Organon & Company | | | | 307 | 10,361 |
| Pfizer Incorporated | | | | 6,796 | 356,314 |
| Viatris Incorporated | | | | 1,468 | 15,370 |
| Zoetis Incorporated | | | | 570 | 97,977 |
| | | | | | 1,856,505 |
| Industrials: 4.59% | | | | | |
| Aerospace & defense: 1.02% | | | | | |
| General Dynamics Corporation | | | | 279 | 61,729 |
| Howmet Aerospace Incorporated | | | | 456 | 14,341 |
| Huntington Ingalls Industries Incorporated | | | | 49 | 10,673 |
| L3Harris Technologies Incorporated | | | | 234 | 56,558 |
| Lockheed Martin Corporation | | | | 287 | 123,399 |
| Northrop Grumman Corporation | | | | 177 | 84,707 |
| Raytheon Technologies Corporation | | | | 1,801 | 173,094 |
| Textron Incorporated | | | | 261 | 15,939 |
| The Boeing Company † | | | | 674 | 92,149 |
| TransDigm Group Incorporated † | | | | 63 | 33,810 |
| | | | | | 666,399 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 15
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Air freight & logistics: 0.40% | | | | | |
| C.H. Robinson Worldwide Incorporated | | | | 154 | $ 15,611 |
| Expeditors International of Washington Incorporated | | | | 203 | 19,784 |
| FedEx Corporation | | | | 289 | 65,519 |
| United Parcel Service Incorporated Class B | | | | 890 | 162,461 |
| | | | | | 263,375 |
| Airlines: 0.12% | | | | | |
| Alaska Air Group Incorporated † | | | | 153 | 6,128 |
| American Airlines Group Incorporated † | | | | 787 | 9,979 |
| Delta Air Lines Incorporated † | | | | 776 | 22,481 |
| Southwest Airlines Company † | | | | 718 | 25,934 |
| United Airlines Holdings Incorporated † | | | | 396 | 14,026 |
| | | | | | 78,548 |
| Building products: 0.24% | | | | | |
| A.O. Smith Corporation | | | | 157 | 8,585 |
| Allegion plc | | | | 106 | 10,377 |
| Carrier Global Corporation | | | | 1,027 | 36,623 |
| Fortune Brands Home & Security Incorporated | | | | 158 | 9,461 |
| Johnson Controls International plc | | | | 843 | 40,363 |
| Masco Corporation | | | | 286 | 14,472 |
| Trane Technologies plc | | | | 283 | 36,753 |
| | | | | | 156,634 |
| Commercial services & supplies: 0.28% | | | | | |
| Cintas Corporation | | | | 105 | 39,221 |
| Copart Incorporated † | | | | 259 | 28,143 |
| Republic Services Incorporated | | | | 253 | 33,110 |
| Rollins Incorporated | | | | 274 | 9,568 |
| Waste Management Incorporated | | | | 463 | 70,830 |
| | | | | | 180,872 |
| Construction & engineering: 0.03% | | | | | |
| Quanta Services Incorporated | | | | 174 | 21,809 |
| Electrical equipment: 0.29% | | | | | |
| AMETEK Incorporated | | | | 280 | 30,769 |
| Eaton Corporation plc | | | | 483 | 60,853 |
| Emerson Electric Company | | | | 719 | 57,189 |
| Generac Holdings Incorporated † | | | | 77 | 16,215 |
| Rockwell Automation Incorporated | | | | 141 | 28,103 |
| | | | | | 193,129 |
| Industrial conglomerates: 0.48% | | | | | |
| 3M Company | | | | 689 | 89,163 |
| General Electric Company | | | | 1,333 | 84,872 |
| Honeywell International Incorporated | | | | 824 | 143,219 |
| | | | | | 317,254 |
| Machinery: 0.90% | | | | | |
| Caterpillar Incorporated | | | | 646 | 115,479 |
| Cummins Incorporated | | | | 171 | 33,094 |
| Deere & Company | | | | 338 | 101,221 |
| Dover Corporation | | | | 175 | 21,231 |
| Fortive Corporation | | | | 434 | 23,601 |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Machinery (continued) | | | | | |
| IDEX Corporation | | | | 92 | $ 16,710 |
| Illinois Tool Works Incorporated | | | | 343 | 62,512 |
| Ingersoll Rand Incorporated | | | | 492 | 20,703 |
| Nordson Corporation | | | | 65 | 13,159 |
| Otis Worldwide Corporation | | | | 512 | 36,183 |
| PACCAR Incorporated | | | | 421 | 34,665 |
| Parker-Hannifin Corporation | | | | 155 | 38,138 |
| Pentair plc | | | | 200 | 9,154 |
| Snap-on Incorporated | | | | 65 | 12,807 |
| Stanley Black & Decker Incorporated | | | | 183 | 19,189 |
| Wabtec Corporation | | | | 221 | 18,140 |
| Xylem Incorporated | | | | 218 | 17,043 |
| | | | | | 593,029 |
| Professional services: 0.18% | | | | | |
| Equifax Incorporated | | | | 148 | 27,051 |
| Jacobs Engineering Group Incorporated | | | | 156 | 19,832 |
| Leidos Holdings Incorporated | | | | 166 | 16,718 |
| Nielsen Holdings plc | | | | 436 | 10,124 |
| Robert Half International Incorporated | | | | 134 | 10,035 |
| Verisk Analytics Incorporated | | | | 191 | 33,060 |
| | | | | | 116,820 |
| Road & rail: 0.53% | | | | | |
| CSX Corporation | | | | 2,633 | 76,515 |
| J.B. Hunt Transport Services Incorporated | | | | 102 | 16,062 |
| Norfolk Southern Corporation | | | | 289 | 65,687 |
| Old Dominion Freight Line Incorporated | | | | 111 | 28,447 |
| Union Pacific Corporation | | | | 761 | 162,306 |
| | | | | | 349,017 |
| Trading companies & distributors: 0.12% | | | | | |
| Fastenal Company | | | | 697 | 34,794 |
| United Rentals Incorporated † | | | | 87 | 21,133 |
| W.W. Grainger Incorporated | | | | 52 | 23,630 |
| | | | | | 79,557 |
| Information technology: 15.79% | | | | | |
| Communications equipment: 0.46% | | | | | |
| Arista Networks Incorporated † | | | | 273 | 25,591 |
| Cisco Systems Incorporated | | | | 5,031 | 214,522 |
| F5 Networks Incorporated † | | | | 73 | 11,172 |
| Juniper Networks Incorporated | | | | 391 | 11,144 |
| Motorola Solutions Incorporated | | | | 203 | 42,549 |
| | | | | | 304,978 |
| Electronic equipment, instruments & components: 0.36% | | | | | |
| Amphenol Corporation Class A | | | | 723 | 46,547 |
| CDW Corporation of Delaware | | | | 164 | 25,840 |
| Corning Incorporated | | | | 921 | 29,021 |
| Keysight Technologies Incorporated † | | | | 220 | 30,327 |
| TE Connectivity Limited | | | | 390 | 44,129 |
| Teledyne Technologies Incorporated † | | | | 57 | 21,381 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 17
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Electronic equipment, instruments & components (continued) | | | | | |
| Trimble Incorporated † | | | | 303 | $ 17,644 |
| Zebra Technologies Corporation Class A † | | | | 64 | 18,813 |
| | | | | | 233,702 |
| IT services: 2.58% | | | | | |
| Accenture plc Class A | | | | 767 | 212,958 |
| Akamai Technologies Incorporated † | | | | 194 | 17,718 |
| Automatic Data Processing Incorporated | | | | 506 | 106,280 |
| Broadridge Financial Solutions Incorporated | | | | 142 | 20,242 |
| Cognizant Technology Solutions Corporation Class A | | | | 631 | 42,586 |
| DXC Technology Company † | | | | 296 | 8,972 |
| EPAM Systems Incorporated † | | | | 69 | 20,340 |
| Fidelity National Information Services Incorporated | | | | 740 | 67,836 |
| Fiserv Incorporated † | | | | 705 | 62,724 |
| FleetCor Technologies Incorporated † | | | | 94 | 19,750 |
| Gartner Incorporated † | | | | 98 | 23,699 |
| Global Payments Incorporated | | | | 341 | 37,728 |
| International Business Machines Corporation | | | | 1,089 | 153,756 |
| Jack Henry & Associates Incorporated | | | | 88 | 15,842 |
| MasterCard Incorporated Class A | | | | 1,040 | 328,099 |
| Paychex Incorporated | | | | 389 | 44,295 |
| PayPal Holdings Incorporated † | | | | 1,403 | 97,986 |
| VeriSign Incorporated † | | | | 115 | 19,243 |
| Visa Incorporated Class A | | | | 1,993 | 392,402 |
| | | | | | 1,692,456 |
| Semiconductors & semiconductor equipment: 3.05% | | | | | |
| Advanced Micro Devices Incorporated † | | | | 1,963 | 150,111 |
| Analog Devices Incorporated | | | | 634 | 92,621 |
| Applied Materials Incorporated | | | | 1,070 | 97,349 |
| Broadcom Incorporated | | | | 495 | 240,476 |
| Enphase Energy Incorporated † | | | | 164 | 32,019 |
| Intel Corporation | | | | 4,953 | 185,292 |
| KLA Corporation | | | | 181 | 57,753 |
| Lam Research Corporation | | | | 168 | 71,593 |
| Microchip Technology Incorporated | | | | 673 | 39,088 |
| Micron Technology Incorporated | | | | 1,352 | 74,739 |
| Monolithic Power Systems Incorporated | | | | 53 | 20,354 |
| NVIDIA Corporation | | | | 3,033 | 459,772 |
| NXP Semiconductors NV | | | | 318 | 47,074 |
| ON Semiconductor Corporation † | | | | 526 | 26,463 |
| Qorvo Incorporated † | | | | 131 | 12,356 |
| Qualcomm Incorporated | | | | 1,357 | 173,343 |
| Skyworks Solutions Incorporated | | | | 195 | 18,065 |
| Solaredge Technologies Incorporated † | | | | 67 | 18,337 |
| Teradyne Incorporated | | | | 194 | 17,373 |
| Texas Instruments Incorporated | | | | 1,117 | 171,627 |
| | | | | | 2,005,805 |
| Software: 5.29% | | | | | |
| Adobe Incorporated † | | | | 572 | 209,386 |
| ANSYS Incorporated † | | | | 105 | 25,125 |
| Autodesk Incorporated † | | | | 263 | 45,225 |
| Cadence Design Systems Incorporated † | | | | 334 | 50,110 |
| Ceridian HCM Holding Incorporated † | | | | 166 | 7,815 |
The accompanying notes are an integral part of these financial statements.
18 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Software (continued) | | | | | |
| Citrix Systems Incorporated | | | | 151 | $ 14,673 |
| Fortinet Incorporated † | | | | 805 | 45,547 |
| Intuit Incorporated | | | | 343 | 132,206 |
| Microsoft Corporation | | | | 9,058 | 2,326,366 |
| NortonLifeLock Incorporated | | | | 705 | 15,482 |
| Oracle Corporation | | | | 1,907 | 133,242 |
| Paycom Software Incorporated † | | | | 58 | 16,247 |
| PTC Incorporated † | | | | 128 | 13,612 |
| Roper Technologies Incorporated | | | | 128 | 50,515 |
| Salesforce.com Incorporated † | | | | 1,203 | 198,543 |
| ServiceNow Incorporated † | | | | 243 | 115,551 |
| Synopsys Incorporated † | | | | 185 | 56,185 |
| Tyler Technologies Incorporated † | | | | 50 | 16,624 |
| | | | | | 3,472,454 |
| Technology hardware, storage & peripherals: 4.05% | | | | | |
| Apple Incorporated | | | | 18,623 | 2,546,131 |
| Hewlett Packard Enterprise Company | | | | 1,575 | 20,885 |
| HP Incorporated | | | | 1,276 | 41,827 |
| NetApp Incorporated | | | | 270 | 17,615 |
| Seagate Technology Holdings plc | | | | 239 | 17,074 |
| Western Digital Corporation † | | | | 379 | 16,991 |
| | | | | | 2,660,523 |
| Materials: 1.53% | | | | | |
| Chemicals: 1.05% | | | | | |
| Air Products & Chemicals Incorporated | | | | 269 | 64,689 |
| Albemarle Corporation | | | | 142 | 29,675 |
| Celanese Corporation Series A | | | | 131 | 15,407 |
| CF Industries Holdings Incorporated | | | | 253 | 21,690 |
| Corteva Incorporated | | | | 877 | 47,481 |
| Dow Incorporated | | | | 882 | 45,520 |
| DuPont de Nemours Incorporated | | | | 616 | 34,237 |
| Eastman Chemical Company | | | | 156 | 14,004 |
| Ecolab Incorporated | | | | 301 | 46,282 |
| FMC Corporation | | | | 153 | 16,373 |
| International Flavors & Fragrances Incorporated | | | | 309 | 36,808 |
| Linde plc | | | | 610 | 175,393 |
| LyondellBasell Industries NV Class A | | | | 313 | 27,375 |
| PPG Industries Incorporated | | | | 286 | 32,701 |
| The Mosaic Company | | | | 438 | 20,687 |
| The Sherwin-Williams Company | | | | 290 | 64,934 |
| | | | | | 693,256 |
| Construction materials: 0.07% | | | | | |
| Martin Marietta Materials Incorporated | | | | 76 | 22,742 |
| Vulcan Materials Company | | | | 161 | 22,878 |
| | | | | | 45,620 |
| Containers & packaging: 0.19% | | | | | |
| Amcor plc | | | | 1,820 | 22,623 |
| Avery Dennison Corporation | | | | 99 | 16,025 |
| Ball Corporation | | | | 387 | 26,614 |
| International Paper Company | | | | 449 | 18,782 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 19
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Containers & packaging (continued) | | | | | |
| Packaging Corporation of America | | | | 113 | $ 15,538 |
| Sealed Air Corporation | | | | 177 | 10,216 |
| WestRock Company | | | | 309 | 12,311 |
| | | | | | 122,109 |
| Metals & mining: 0.22% | | | | | |
| Freeport-McMoRan Incorporated | | | | 1,755 | 51,351 |
| Newmont Corporation | | | | 961 | 57,343 |
| Nucor Corporation | | | | 322 | 33,620 |
| | | | | | 142,314 |
| Real estate: 1.72% | | | | | |
| Equity REITs: 1.68% | | | | | |
| Alexandria Real Estate Equities Incorporated | | | | 180 | 26,105 |
| American Tower Corporation | | | | 563 | 143,897 |
| AvalonBay Communities Incorporated | | | | 169 | 32,828 |
| Boston Properties Incorporated | | | | 173 | 15,394 |
| Camden Property Trust | | | | 129 | 17,348 |
| Crown Castle International Corporation | | | | 524 | 88,231 |
| Digital Realty Trust Incorporated | | | | 345 | 44,791 |
| Duke Realty Corporation | | | | 466 | 25,607 |
| Equinix Incorporated | | | | 110 | 72,272 |
| Equity Residential | | | | 414 | 29,899 |
| Essex Property Trust Incorporated | | | | 79 | 20,659 |
| Extra Space Storage Incorporated | | | | 163 | 27,730 |
| Federal Realty Investment Trust | | | | 87 | 8,329 |
| Healthpeak Properties Incorporated | | | | 654 | 16,945 |
| Host Hotels & Resorts Incorporated | | | | 866 | 13,579 |
| Iron Mountain Incorporated | | | | 352 | 17,139 |
| Kimco Realty Corporation | | | | 749 | 14,808 |
| Mid-America Apartment Communities Incorporated | | | | 140 | 24,454 |
| Prologis Incorporated | | | | 897 | 105,532 |
| Public Storage Incorporated | | | | 185 | 57,844 |
| Realty Income Corporation | | | | 729 | 49,762 |
| Regency Centers Corporation | | | | 188 | 11,150 |
| SBA Communications Corporation | | | | 131 | 41,927 |
| Simon Property Group Incorporated | | | | 398 | 37,778 |
| UDR Incorporated | | | | 363 | 16,713 |
| Ventas Incorporated | | | | 484 | 24,892 |
| VICI Properties Incorporated | | | | 1,166 | 34,735 |
| Vornado Realty Trust | | | | 193 | 5,518 |
| Welltower Incorporated | | | | 550 | 45,293 |
| Weyerhaeuser Company | | | | 902 | 29,874 |
| | | | | | 1,101,033 |
| Real estate management & development: 0.04% | | | | | |
| CBRE Group Incorporated Class A † | | | | 396 | 29,150 |
| Utilities: 1.82% | | | | | |
| Electric utilities: 1.15% | | | | | |
| Alliant Energy Corporation | | | | 304 | 17,817 |
| American Electric Power Company Incorporated | | | | 622 | 59,675 |
| Constellation Energy Corporation | | | | 396 | 22,675 |
| Duke Energy Corporation | | | | 932 | 99,920 |
The accompanying notes are an integral part of these financial statements.
20 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Electric utilities (continued) | | | | | |
| Edison International | | | | 462 | $ 29,217 |
| Entergy Corporation | | | | 246 | 27,709 |
| Evergy Incorporated | | | | 278 | 18,140 |
| Eversource Energy | | | | 418 | 35,308 |
| Exelon Corporation | | | | 1,187 | 53,795 |
| FirstEnergy Corporation | | | | 692 | 26,566 |
| NextEra Energy Incorporated | | | | 2,379 | 184,277 |
| NRG Energy Incorporated | | | | 287 | 10,955 |
| Pinnacle West Capital Corporation | | | | 137 | 10,017 |
| PPL Corporation | | | | 891 | 24,173 |
| The Southern Company | | | | 1,287 | 91,776 |
| Xcel Energy Incorporated | | | | 660 | 46,702 |
| | | | | | 758,722 |
| Gas utilities: 0.03% | | | | | |
| Atmos Energy Corporation | | | | 168 | 18,833 |
| Independent power & renewable electricity producers: 0.02% | | | | | |
| AES Corporation | | | | 809 | 16,997 |
| Multi-utilities: 0.57% | | | | | |
| Ameren Corporation | | | | 313 | 28,283 |
| CenterPoint Energy Incorporated | | | | 762 | 22,540 |
| CMS Energy Corporation | | | | 351 | 23,693 |
| Consolidated Edison Incorporated | | | | 429 | 40,798 |
| Dominion Energy Incorporated | | | | 983 | 78,453 |
| DTE Energy Company | | | | 235 | 29,786 |
| NiSource Incorporated | | | | 491 | 14,480 |
| Public Service Enterprise Group Incorporated | | | | 605 | 38,284 |
| Sempra Energy | | | | 381 | 57,253 |
| WEC Energy Group Incorporated | | | | 382 | 38,444 |
| | | | | | 372,014 |
| Water utilities: 0.05% | | | | | |
| American Water Works Company Incorporated | | | | 220 | 32,729 |
| Total Common stocks (Cost $20,659,994) | | | | | 38,640,211 |
| | | Interest
rate | Maturity
date | Principal | |
| U.S. Treasury securities: 38.03% | | | | | |
| U.S. Treasury Bond | | 1.13% | 5-15-2040 | $ 109,000 | 75,874 |
| U.S. Treasury Bond | | 1.13 | 8-15-2040 | 145,000 | 100,175 |
| U.S. Treasury Bond | | 1.25 | 5-15-2050 | 120,000 | 76,350 |
| U.S. Treasury Bond | | 1.38 | 11-15-2040 | 87,000 | 62,657 |
| U.S. Treasury Bond | | 1.38 | 8-15-2050 | 151,000 | 99,395 |
| U.S. Treasury Bond | | 1.63 | 11-15-2050 | 87,000 | 61,189 |
| U.S. Treasury Bond | | 1.75 | 8-15-2041 | 225,000 | 171,149 |
| U.S. Treasury Bond | | 1.88 | 2-15-2041 | 208,000 | 163,126 |
| U.S. Treasury Bond | | 1.88 | 2-15-2051 | 221,000 | 165,776 |
| U.S. Treasury Bond | | 2.00 | 2-15-2050 | 152,000 | 117,788 |
| U.S. Treasury Bond | | 2.25 | 8-15-2046 | 106,000 | 85,471 |
| U.S. Treasury Bond | | 2.25 | 8-15-2049 | 108,000 | 88,615 |
| U.S. Treasury Bond | | 2.38 | 11-15-2049 | 127,000 | 107,265 |
| U.S. Treasury Bond | | 2.50 | 2-15-2045 | 116,000 | 98,383 |
| U.S. Treasury Bond | | 2.50 | 2-15-2046 | 106,000 | 89,881 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 21
Portfolio of investments—June 30, 2022 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Bond | | 2.50% | 5-15-2046 | $ 105,000 | $ 88,996 |
| U.S. Treasury Bond | | 2.75 | 8-15-2042 | 66,000 | 59,217 |
| U.S. Treasury Bond | | 2.75 | 11-15-2042 | 78,000 | 69,844 |
| U.S. Treasury Bond | | 2.75 | 8-15-2047 | 101,000 | 90,316 |
| U.S. Treasury Bond | | 2.75 | 11-15-2047 | 100,000 | 89,586 |
| U.S. Treasury Bond | | 2.88 | 5-15-2043 | 111,000 | 101,218 |
| U.S. Treasury Bond | | 2.88 | 8-15-2045 | 115,000 | 104,470 |
| U.S. Treasury Bond | | 2.88 | 11-15-2046 | 104,000 | 94,819 |
| U.S. Treasury Bond | | 2.88 | 5-15-2049 | 140,000 | 130,534 |
| U.S. Treasury Bond | | 3.00 | 5-15-2042 | 40,000 | 37,497 |
| U.S. Treasury Bond | | 3.00 | 11-15-2044 | 114,000 | 105,641 |
| U.S. Treasury Bond | | 3.00 | 5-15-2045 | 116,000 | 107,599 |
| U.S. Treasury Bond | | 3.00 | 11-15-2045 | 115,000 | 106,860 |
| U.S. Treasury Bond | | 3.00 | 2-15-2047 | 106,000 | 98,982 |
| U.S. Treasury Bond | | 3.00 | 5-15-2047 | 104,000 | 97,208 |
| U.S. Treasury Bond | | 3.00 | 2-15-2048 | 114,000 | 107,409 |
| U.S. Treasury Bond | | 3.00 | 8-15-2048 | 121,000 | 114,331 |
| U.S. Treasury Bond | | 3.00 | 2-15-2049 | 140,000 | 133,410 |
| U.S. Treasury Bond | | 3.13 | 11-15-2041 | 37,000 | 35,524 |
| U.S. Treasury Bond | | 3.13 | 2-15-2042 | 46,000 | 44,058 |
| U.S. Treasury Bond | | 3.13 | 2-15-2043 | 79,000 | 75,059 |
| U.S. Treasury Bond | | 3.13 | 8-15-2044 | 115,000 | 108,927 |
| U.S. Treasury Bond | | 3.13 | 5-15-2048 | 123,000 | 119,036 |
| U.S. Treasury Bond | | 3.38 | 5-15-2044 | 110,000 | 108,569 |
| U.S. Treasury Bond | | 3.38 | 11-15-2048 | 135,000 | 137,167 |
| U.S. Treasury Bond | | 3.50 | 2-15-2039 | 29,000 | 30,295 |
| U.S. Treasury Bond | | 3.63 | 8-15-2043 | 88,000 | 90,317 |
| U.S. Treasury Bond | | 3.63 | 2-15-2044 | 113,000 | 115,940 |
| U.S. Treasury Bond | | 3.75 | 8-15-2041 | 36,000 | 37,825 |
| U.S. Treasury Bond | | 3.75 | 11-15-2043 | 110,000 | 115,066 |
| U.S. Treasury Bond | | 3.88 | 8-15-2040 | 37,000 | 39,892 |
| U.S. Treasury Bond | | 4.25 | 5-15-2039 | 31,000 | 35,409 |
| U.S. Treasury Bond | | 4.25 | 11-15-2040 | 40,000 | 45,205 |
| U.S. Treasury Bond | | 4.38 | 2-15-2038 | 18,000 | 20,958 |
| U.S. Treasury Bond | | 4.38 | 11-15-2039 | 35,000 | 40,433 |
| U.S. Treasury Bond | | 4.38 | 5-15-2040 | 35,000 | 40,335 |
| U.S. Treasury Bond | | 4.38 | 5-15-2041 | 33,000 | 37,797 |
| U.S. Treasury Bond | | 4.50 | 2-15-2036 | 26,000 | 30,568 |
| U.S. Treasury Bond | | 4.50 | 5-15-2038 | 21,000 | 24,762 |
| U.S. Treasury Bond | | 4.50 | 8-15-2039 | 33,000 | 38,798 |
| U.S. Treasury Bond | | 4.63 | 2-15-2040 | 38,000 | 45,220 |
| U.S. Treasury Bond | | 4.75 | 2-15-2037 | 13,000 | 15,697 |
| U.S. Treasury Bond | | 4.75 | 2-15-2041 | 44,000 | 52,989 |
| U.S. Treasury Bond | | 5.00 | 5-15-2037 | 17,000 | 21,017 |
| U.S. Treasury Bond | | 5.25 | 11-15-2028 | 45,000 | 50,623 |
| U.S. Treasury Bond | | 5.25 | 2-15-2029 | 33,000 | 37,286 |
| U.S. Treasury Bond | | 5.38 | 2-15-2031 | 31,000 | 36,510 |
| U.S. Treasury Bond | | 5.50 | 8-15-2028 | 35,000 | 39,681 |
| U.S. Treasury Bond | | 6.13 | 11-15-2027 | 49,000 | 56,304 |
| U.S. Treasury Bond | | 6.13 | 8-15-2029 | 25,000 | 29,921 |
| U.S. Treasury Bond | | 6.25 | 5-15-2030 | 21,000 | 25,722 |
| U.S. Treasury Bond | | 6.38 | 8-15-2027 | 21,000 | 24,250 |
| U.S. Treasury Bond | | 6.88 | 8-15-2025 | 21,000 | 23,397 |
| U.S. Treasury Note | | 0.13 | 5-15-2023 | 117,000 | 114,230 |
| U.S. Treasury Note | | 0.13 | 7-15-2023 | 123,000 | 119,459 |
The accompanying notes are an integral part of these financial statements.
22 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Note | | 0.13% | 8-15-2023 | $ 128,000 | $ 123,960 |
| U.S. Treasury Note | | 0.13 | 9-15-2023 | 143,000 | 138,202 |
| U.S. Treasury Note | | 0.13 | 10-15-2023 | 146,000 | 140,753 |
| U.S. Treasury Note | | 0.13 | 12-15-2023 | 142,000 | 136,253 |
| U.S. Treasury Note | | 0.13 | 1-15-2024 | 154,000 | 147,413 |
| U.S. Treasury Note | | 0.13 | 2-15-2024 | 185,000 | 176,754 |
| U.S. Treasury Note | | 0.25 | 4-15-2023 | 119,000 | 116,606 |
| U.S. Treasury Note | | 0.25 | 6-15-2023 | 122,000 | 118,898 |
| U.S. Treasury Note | | 0.25 | 11-15-2023 | 172,000 | 165,752 |
| U.S. Treasury Note | | 0.25 | 3-15-2024 | 185,000 | 176,639 |
| U.S. Treasury Note | | 0.25 | 5-15-2024 | 185,000 | 175,829 |
| U.S. Treasury Note | | 0.25 | 5-31-2025 | 132,000 | 121,806 |
| U.S. Treasury Note | | 0.25 | 6-30-2025 | 142,000 | 130,740 |
| U.S. Treasury Note | | 0.25 | 7-31-2025 | 147,000 | 134,970 |
| U.S. Treasury Note | | 0.25 | 8-31-2025 | 153,000 | 140,091 |
| U.S. Treasury Note | | 0.25 | 9-30-2025 | 166,000 | 151,663 |
| U.S. Treasury Note | | 0.25 | 10-31-2025 | 176,000 | 160,380 |
| U.S. Treasury Note | | 0.38 | 4-15-2024 | 184,000 | 175,648 |
| U.S. Treasury Note | | 0.38 | 4-30-2025 | 126,000 | 116,939 |
| U.S. Treasury Note | | 0.38 | 11-30-2025 | 181,000 | 165,318 |
| U.S. Treasury Note | | 0.38 | 12-31-2025 | 178,000 | 162,223 |
| U.S. Treasury Note | | 0.38 | 1-31-2026 | 191,000 | 173,676 |
| U.S. Treasury Note | | 0.38 | 7-31-2027 | 134,000 | 117,140 |
| U.S. Treasury Note | | 0.38 | 9-30-2027 | 155,000 | 134,826 |
| U.S. Treasury Note | | 0.50 | 3-15-2023 | 104,000 | 102,383 |
| U.S. Treasury Note | | 0.50 | 3-31-2025 | 120,000 | 111,994 |
| U.S. Treasury Note | | 0.50 | 2-28-2026 | 193,000 | 175,909 |
| U.S. Treasury Note | | 0.50 | 4-30-2027 | 98,000 | 86,738 |
| U.S. Treasury Note | | 0.50 | 5-31-2027 | 111,000 | 98,027 |
| U.S. Treasury Note | | 0.50 | 6-30-2027 | 122,000 | 107,536 |
| U.S. Treasury Note | | 0.50 | 8-31-2027 | 142,000 | 124,622 |
| U.S. Treasury Note | | 0.50 | 10-31-2027 | 168,000 | 146,777 |
| U.S. Treasury Note | | 0.63 | 3-31-2027 | 81,000 | 72,308 |
| U.S. Treasury Note | | 0.63 | 11-30-2027 | 179,000 | 157,184 |
| U.S. Treasury Note | | 0.63 | 5-15-2030 | 178,000 | 148,421 |
| U.S. Treasury Note | | 0.63 | 8-15-2030 | 222,000 | 184,052 |
| U.S. Treasury Note | | 0.75 | 3-31-2026 | 191,000 | 175,429 |
| U.S. Treasury Note | | 0.75 | 4-30-2026 | 194,000 | 177,843 |
| U.S. Treasury Note | | 0.75 | 5-31-2026 | 194,000 | 177,502 |
| U.S. Treasury Note | | 0.88 | 11-15-2030 | 132,000 | 111,452 |
| U.S. Treasury Note | | 1.13 | 2-28-2025 | 118,000 | 112,312 |
| U.S. Treasury Note | | 1.13 | 2-28-2027 | 47,000 | 43,058 |
| U.S. Treasury Note | | 1.25 | 7-31-2023 | 67,000 | 65,791 |
| U.S. Treasury Note | | 1.25 | 8-31-2024 | 104,000 | 100,193 |
| U.S. Treasury Note | | 1.25 | 8-15-2031 | 351,000 | 302,160 |
| U.S. Treasury Note | | 1.38 | 2-15-2023 | 82,000 | 81,366 |
| U.S. Treasury Note | | 1.38 | 6-30-2023 | 64,000 | 63,020 |
| U.S. Treasury Note | | 1.38 | 8-31-2023 | 124,000 | 121,709 |
| U.S. Treasury Note | | 1.38 | 9-30-2023 | 90,000 | 88,253 |
| U.S. Treasury Note | | 1.38 | 1-31-2025 | 105,000 | 100,706 |
| U.S. Treasury Note | | 1.38 | 8-31-2026 | 95,000 | 88,784 |
| U.S. Treasury Note | | 1.50 | 1-15-2023 | 79,000 | 78,506 |
| U.S. Treasury Note | | 1.50 | 2-28-2023 | 126,000 | 124,957 |
| U.S. Treasury Note | | 1.50 | 3-31-2023 | 126,000 | 124,804 |
| U.S. Treasury Note | | 1.50 | 9-30-2024 | 108,000 | 104,473 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 23
Portfolio of investments—June 30, 2022 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Note | | 1.50% | 10-31-2024 | $ 114,000 | $ 110,139 |
| U.S. Treasury Note | | 1.50 | 11-30-2024 | 122,000 | 117,687 |
| U.S. Treasury Note | | 1.50 | 8-15-2026 | 102,000 | 95,792 |
| U.S. Treasury Note | | 1.50 | 1-31-2027 | 98,000 | 91,500 |
| U.S. Treasury Note | | 1.50 | 2-15-2030 | 209,000 | 187,724 |
| U.S. Treasury Note | | 1.63 | 4-30-2023 | 66,000 | 65,332 |
| U.S. Treasury Note | | 1.63 | 5-31-2023 | 64,000 | 63,270 |
| U.S. Treasury Note | | 1.63 | 10-31-2023 | 90,000 | 88,443 |
| U.S. Treasury Note | | 1.63 | 2-15-2026 | 168,000 | 159,672 |
| U.S. Treasury Note | | 1.63 | 5-15-2026 | 105,000 | 99,508 |
| U.S. Treasury Note | | 1.63 | 9-30-2026 | 97,000 | 91,502 |
| U.S. Treasury Note | | 1.63 | 10-31-2026 | 94,000 | 88,533 |
| U.S. Treasury Note | | 1.63 | 11-30-2026 | 97,000 | 91,271 |
| U.S. Treasury Note | | 1.63 | 8-15-2029 | 157,000 | 142,944 |
| U.S. Treasury Note | | 1.75 | 1-31-2023 | 129,000 | 128,380 |
| U.S. Treasury Note | | 1.75 | 5-15-2023 | 113,000 | ��� 111,896 |
| U.S. Treasury Note | | 1.75 | 6-30-2024 | 106,000 | 103,458 |
| U.S. Treasury Note | | 1.75 | 7-31-2024 | 110,000 | 107,241 |
| U.S. Treasury Note | | 1.75 | 12-31-2024 | 99,000 | 95,945 |
| U.S. Treasury Note | | 1.75 | 12-31-2026 | 99,000 | 93,601 |
| U.S. Treasury Note | | 1.75 | 11-15-2029 | 178,000 | 163,336 |
| U.S. Treasury Note | | 1.88 | 8-31-2024 | 125,000 | 122,056 |
| U.S. Treasury Note | | 1.88 | 6-30-2026 | 98,000 | 93,724 |
| U.S. Treasury Note | | 1.88 | 7-31-2026 | 99,000 | 94,568 |
| U.S. Treasury Note | | 2.00 | 2-15-2023 | 118,000 | 117,548 |
| U.S. Treasury Note | | 2.00 | 4-30-2024 | 123,000 | 120,852 |
| U.S. Treasury Note | | 2.00 | 5-31-2024 | 123,000 | 120,775 |
| U.S. Treasury Note | | 2.00 | 6-30-2024 | 123,000 | 120,679 |
| U.S. Treasury Note | | 2.00 | 2-15-2025 | 289,000 | 281,583 |
| U.S. Treasury Note | | 2.00 | 8-15-2025 | 220,000 | 213,134 |
| U.S. Treasury Note | | 2.00 | 11-15-2026 | 170,000 | 162,536 |
| U.S. Treasury Note | | 2.00 | 8-15-2051 | 224,000 | 173,119 |
| U.S. Treasury Note | | 2.13 | 11-30-2023 | 110,000 | 108,737 |
| U.S. Treasury Note | | 2.13 | 2-29-2024 | 128,000 | 126,260 |
| U.S. Treasury Note | | 2.13 | 3-31-2024 | 127,000 | 125,130 |
| U.S. Treasury Note | | 2.13 | 7-31-2024 | 123,000 | 120,848 |
| U.S. Treasury Note | | 2.13 | 9-30-2024 | 118,000 | 115,801 |
| U.S. Treasury Note | | 2.13 | 11-30-2024 | 119,000 | 116,541 |
| U.S. Treasury Note | | 2.13 | 5-15-2025 | 234,000 | 228,269 |
| U.S. Treasury Note | | 2.13 | 5-31-2026 | 97,000 | 93,711 |
| U.S. Treasury Note | | 2.25 | 12-31-2023 | 127,000 | 125,641 |
| U.S. Treasury Note | | 2.25 | 1-31-2024 | 127,000 | 125,556 |
| U.S. Treasury Note | | 2.25 | 4-30-2024 | 120,000 | 118,434 |
| U.S. Treasury Note | | 2.25 | 10-31-2024 | 121,000 | 118,968 |
| U.S. Treasury Note | | 2.25 | 11-15-2024 | 290,000 | 285,084 |
| U.S. Treasury Note | | 2.25 | 12-31-2024 | 118,000 | 115,797 |
| U.S. Treasury Note | | 2.25 | 11-15-2025 | 219,000 | 213,303 |
| U.S. Treasury Note | | 2.25 | 3-31-2026 | 99,000 | 96,192 |
| U.S. Treasury Note | | 2.25 | 2-15-2027 | 196,000 | 188,979 |
| U.S. Treasury Note | | 2.25 | 8-15-2027 | 101,000 | 97,011 |
| U.S. Treasury Note | | 2.25 | 11-15-2027 | 99,000 | 94,912 |
| U.S. Treasury Note | | 2.25 | 5-15-2041 | 201,000 | 167,725 |
| U.S. Treasury Note | | 2.38 | 1-31-2023 | 144,000 | 143,820 |
| U.S. Treasury Note | | 2.38 | 2-29-2024 | 84,000 | 83,206 |
| U.S. Treasury Note | | 2.38 | 8-15-2024 | 289,000 | 285,173 |
The accompanying notes are an integral part of these financial statements.
24 | Allspring VT Index Asset Allocation Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | Interest
rate | Maturity
date | Principal | Value |
| U.S. Treasury securities (continued) | | | | | |
| U.S. Treasury Note | | 2.38% | 4-30-2026 | $ 98,000 | $ 95,650 |
| U.S. Treasury Note | | 2.38 | 5-15-2027 | 164,000 | 158,760 |
| U.S. Treasury Note | | 2.38 | 5-15-2029 | 90,000 | 86,221 |
| U.S. Treasury Note | | 2.38 | 5-15-2051 | 224,000 | 189,096 |
| U.S. Treasury Note | | 2.50 | 3-31-2023 | 83,000 | 82,812 |
| U.S. Treasury Note | | 2.50 | 8-15-2023 | 102,000 | 101,450 |
| U.S. Treasury Note | | 2.50 | 1-31-2024 | 103,000 | 102,228 |
| U.S. Treasury Note | | 2.50 | 5-15-2024 | 281,000 | 278,475 |
| U.S. Treasury Note | | 2.50 | 1-31-2025 | 116,000 | 114,478 |
| U.S. Treasury Note | | 2.50 | 2-28-2026 | 97,000 | 95,136 |
| U.S. Treasury Note | | 2.63 | 2-28-2023 | 146,000 | 145,920 |
| U.S. Treasury Note | | 2.63 | 6-30-2023 | 83,000 | 82,780 |
| U.S. Treasury Note | | 2.63 | 12-31-2023 | 97,000 | 96,515 |
| U.S. Treasury Note | | 2.63 | 3-31-2025 | 114,000 | 112,838 |
| U.S. Treasury Note | | 2.63 | 12-31-2025 | 97,000 | 95,628 |
| U.S. Treasury Note | | 2.63 | 1-31-2026 | 95,000 | 93,623 |
| U.S. Treasury Note | | 2.63 | 2-15-2029 | 181,000 | 176,228 |
| U.S. Treasury Note | | 2.75 | 4-30-2023 | 82,000 | 81,914 |
| U.S. Treasury Note | | 2.75 | 5-31-2023 | 82,000 | 81,891 |
| U.S. Treasury Note | | 2.75 | 7-31-2023 | 80,000 | 79,809 |
| U.S. Treasury Note | | 2.75 | 8-31-2023 | 145,000 | 144,632 |
| U.S. Treasury Note | | 2.75 | 11-15-2023 | 134,000 | 133,597 |
| U.S. Treasury Note | | 2.75 | 2-15-2024 | 217,000 | 216,237 |
| U.S. Treasury Note | | 2.75 | 2-28-2025 | 121,000 | 120,126 |
| U.S. Treasury Note | | 2.75 | 6-30-2025 | 119,000 | 118,075 |
| U.S. Treasury Note | | 2.75 | 8-31-2025 | 122,000 | 120,909 |
| U.S. Treasury Note | | 2.75 | 2-15-2028 | 189,000 | 185,700 |
| U.S. Treasury Note | | 2.88 | 9-30-2023 | 148,000 | 147,855 |
| U.S. Treasury Note | | 2.88 | 10-31-2023 | 84,000 | 83,908 |
| U.S. Treasury Note | | 2.88 | 11-30-2023 | 76,000 | 75,902 |
| U.S. Treasury Note | | 2.88 | 4-30-2025 | 114,000 | 113,510 |
| U.S. Treasury Note | | 2.88 | 5-31-2025 | 117,000 | 116,497 |
| U.S. Treasury Note | | 2.88 | 7-31-2025 | 118,000 | 117,456 |
| U.S. Treasury Note | | 2.88 | 11-30-2025 | 96,000 | 95,426 |
| U.S. Treasury Note | | 2.88 | 5-15-2028 | 178,000 | 175,921 |
| U.S. Treasury Note | | 2.88 | 8-15-2028 | 190,000 | 187,684 |
| U.S. Treasury Note | | 3.00 | 9-30-2025 | 121,000 | 120,825 |
| U.S. Treasury Note | | 3.00 | 10-31-2025 | 76,000 | 75,875 |
| U.S. Treasury Note | | 3.13 | 11-15-2028 | 226,000 | 226,468 |
| U.S. Treasury Note | | 6.00 | 2-15-2026 | 42,000 | 46,208 |
| U.S. Treasury Note | | 6.25 | 8-15-2023 | 17,000 | 17,642 |
| U.S. Treasury Note | | 6.50 | 11-15-2026 | 28,000 | 31,892 |
| U.S. Treasury Note | | 6.63 | 2-15-2027 | 18,000 | 20,718 |
| U.S. Treasury Note | | 6.75 | 8-15-2026 | 21,000 | 23,979 |
| U.S. Treasury Note | | 7.13 | 2-15-2023 | 24,000 | 24,656 |
| U.S. Treasury Note | | 7.50 | 11-15-2024 | 22,000 | 24,251 |
| U.S. Treasury Note | | 7.63 | 2-15-2025 | 20,000 | 22,302 |
| Total U.S. Treasury securities (Cost $26,759,478) | | | | | 24,978,574 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 25
Portfolio of investments—June 30, 2022 (unaudited)
| | | Yield | | Shares | Value |
| Short-term investments: 2.59% | | | | | |
| Investment companies: 2.59% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | 1,703,821 | $ 1,703,821 |
| Total Short-term investments (Cost $1,703,821) | | | | | 1,703,821 |
| Total investments in securities (Cost $49,123,293) | 99.45% | | | | 65,322,606 |
| Other assets and liabilities, net | 0.55 | | | | 362,548 |
| Total net assets | 100.00% | | | | $65,685,154 |
| † | 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. |
| Abbreviations: |
| REIT | Real estate investment trust |
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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | Net
change in
unrealized
gains
(losses) | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | |
| Allspring Government Money Market Fund Select Class | $737,613 | $8,188,681 | $(7,222,473) | $0 | $0 | $1,703,821 | 1,703,821 | $2,333 |
Futures contracts
| Description | Number of
contracts | Expiration
date | Notional
cost | Notional
value | Unrealized
gains | | Unrealized
losses |
| Long | | | | | | | |
| Micro E-Mini S&P 500 Index | 27 | 9-16-2022 | $ 514,430 | $ 511,583 | $ 0 | | $ (2,847) |
| 10-Year U.S. Treasury Notes | 108 | 9-21-2022 | 12,956,348 | 12,801,375 | 0 | | (154,973) |
| U.S. Long Term Bonds | 1 | 9-21-2022 | 136,878 | 138,625 | 1,747 | | 0 |
| 2-Year U.S. Treasury Notes | 1 | 9-30-2022 | 210,198 | 210,016 | 0 | | (182) |
| 5-Year U.S. Treasury Notes | 11 | 9-30-2022 | 1,237,193 | 1,234,750 | 0 | | (2,443) |
| Short | | | | | | | |
| E-Mini S&P 500 Index | (21) | 9-16-2022 | (3,999,314) | (3,978,975) | 20,339 | | 0 |
| U.S. Ultra Treasury Bonds | (23) | 9-21-2022 | (3,632,357) | (3,549,906) | 82,451 | | 0 |
| | | | | | $104,537 | | $(160,445) |
The accompanying notes are an integral part of these financial statements.
26 | Allspring VT Index Asset Allocation Fund
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $47,419,472)
| $ 63,618,785 |
Investments in affiliated securities, at value (cost $1,703,821)
| 1,703,821 |
Cash
| 561 |
Cash at broker segregated for futures contracts
| 225,341 |
Receivable for dividends and interest
| 156,148 |
Receivable for daily variation margin on open futures contracts
| 140,649 |
Receivable for Fund shares sold
| 1,386 |
Prepaid expenses and other assets
| 5,559 |
Total assets
| 65,852,250 |
| Liabilities | |
Payable for daily variation margin on open futures contracts
| 55,410 |
Payable for Fund shares redeemed
| 31,393 |
Management fee payable
| 24,474 |
Professional fees payable
| 18,053 |
Distribution fee payable
| 13,641 |
Custody and accounting fees payable
| 11,296 |
Administration fee payable
| 4,416 |
Trustees’ fees and expenses payable
| 376 |
Accrued expenses and other liabilities
| 8,037 |
Total liabilities
| 167,096 |
Total net assets
| $65,685,154 |
| Net assets consist of | |
Paid-in capital
| $ 42,085,261 |
Total distributable earnings
| 23,599,893 |
Total net assets
| $65,685,154 |
| Computation of net asset value per share | |
Net assets - Class 2
| $ 65,685,154 |
Share outstanding - Class 21
| 3,444,597 |
Net asset value per share - Class 2
| $19.07 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 27
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $82)
| $ 341,669 |
Interest
| 233,917 |
Income from affiliated securities
| 2,333 |
Total investment income
| 577,919 |
| Expenses | |
Management fee
| 217,272 |
Administration fee - Class 2
| 28,970 |
Distribution fee - Class 2
| 86,272 |
Custody and accounting fees
| 14,175 |
Professional fees
| 23,537 |
Shareholder report expenses
| 17,961 |
Trustees’ fees and expenses
| 10,122 |
Other fees and expenses
| 12,846 |
Total expenses
| 411,155 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (48,819) |
Net expenses
| 362,336 |
Net investment income
| 215,583 |
| Realized and unrealized gains (losses) on investments | |
| Net realized gains (losses) on | |
Unaffiliated securities
| 1,565,371 |
Futures contracts
| (715,240) |
Net realized gains on investments
| 850,131 |
| Net change in unrealized gains (losses) on | |
Unaffiliated securities
| (14,301,086) |
Futures contracts
| (130,038) |
Net change in unrealized gains (losses) on investments
| (14,431,124) |
Net realized and unrealized gains (losses) on investments
| (13,580,993) |
Net decrease in net assets resulting from operations
| $(13,365,410) |
The accompanying notes are an integral part of these financial statements.
28 | Allspring VT Index Asset Allocation Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment income
| | $ 215,583 | | $ 372,368 |
Net realized gains on investments
| | 850,131 | | 8,285,341 |
Net change in unrealized gains (losses) on investments
| | (14,431,124) | | 3,385,077 |
Net increase (decrease) in net assets resulting from operations
| | (13,365,410) | | 12,042,786 |
| Distributions to shareholders from | | | | |
Net investment income and net realized gains - Class 2
| | (230,225) | | (8,048,930) |
| Capital share transactions | Shares | | Shares | |
Proceeds from shares sold - Class 2
| 27,162 | 576,960 | 70,413 | 1,564,527 |
Reinvestment of distributions - Class 2
| 11,251 | 230,225 | 371,846 | 8,048,930 |
Payment for shares redeemed - Class 2
| (220,062) | (4,595,535) | (416,528) | (9,329,422) |
Net increase (decrease) in net assets resulting from capital share transactions
| | (3,788,350) | | 284,035 |
Total increase (decrease) in net assets
| | (17,383,985) | | 4,277,891 |
| Net assets | | | | |
Beginning of period
| | 83,069,139 | | 78,791,248 |
End of period
| | $ 65,685,154 | | $83,069,139 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Index Asset Allocation Fund | 29
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $22.91 | $21.88 | $20.55 | $18.42 | $20.45 | $19.16 |
Net investment income
| 0.06 | 0.10 | 0.16 | 0.22 | 0.20 | 0.17 |
Net realized and unrealized gains (losses) on investments
| (3.83) | 3.25 | 3.04 | 3.42 | (0.70) | 2.12 |
Total from investment operations
| (3.77) | 3.35 | 3.20 | 3.64 | (0.50) | 2.29 |
| Distributions to shareholders from | | | | | | |
Net investment income
| (0.07) | (0.13) | (0.17) | (0.22) | (0.20) | (0.15) |
Net realized gains
| 0.00 | (2.19) | (1.70) | (1.29) | (1.33) | (0.85) |
Total distributions to shareholders
| (0.07) | (2.32) | (1.87) | (1.51) | (1.53) | (1.00) |
Net asset value, end of period
| $19.07 | $22.91 | $21.88 | $20.55 | $18.42 | $20.45 |
Total return1
| (16.54)% | 16.00% | 16.59% | 20.16% | (2.90)% | 12.25% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.14% | 1.13% | 1.14% | 1.05% | 1.05% | 1.16% |
Net expenses
| 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income
| 0.60% | 0.46% | 0.78% | 1.07% | 0.94% | 0.86% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 12% | 7% | 21% | 4% | 10% | 10% |
Net assets, end of period (000s omitted)
| $65,685 | $83,069 | $78,791 | $72,193 | $68,851 | $81,956 |
| 1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
30 | Allspring VT Index Asset Allocation Fund
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT Index Asset Allocation Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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.
Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
Allspring VT Index Asset Allocation Fund | 31
Notes to financial statements (unaudited)
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
Futures contracts
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 on a specified date. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in interest rates and security values and is subject to interest rate risk and 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 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.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
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. generally accepted accounting principles. 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.
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.
32 | Allspring VT Index Asset Allocation Fund
Notes to financial statements (unaudited)
As of June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $49,761,552 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $18,972,606 |
| Gross unrealized losses | (3,467,460) |
| Net unrealized gains | $15,505,146 |
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 June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 3,426,983 | $0 | $0 | $ 3,426,983 |
| Consumer discretionary | 4,072,992 | 0 | 0 | 4,072,992 |
| Consumer staples | 2,699,528 | 0 | 0 | 2,699,528 |
| Energy | 1,682,653 | 0 | 0 | 1,682,653 |
| Financials | 4,188,507 | 0 | 0 | 4,188,507 |
| Health care | 5,850,410 | 0 | 0 | 5,850,410 |
| Industrials | 3,016,443 | 0 | 0 | 3,016,443 |
| Information technology | 10,369,918 | 0 | 0 | 10,369,918 |
| Materials | 1,003,299 | 0 | 0 | 1,003,299 |
| Real estate | 1,130,183 | 0 | 0 | 1,130,183 |
| Utilities | 1,199,295 | 0 | 0 | 1,199,295 |
| U.S. Treasury securities | 24,978,574 | 0 | 0 | 24,978,574 |
| Short-term investments | | | | |
| Investment companies | 1,703,821 | 0 | 0 | 1,703,821 |
| | 65,322,606 | 0 | 0 | 65,322,606 |
| Futures contracts | 104,537 | 0 | 0 | 104,537 |
| Total assets | $65,427,143 | $0 | $0 | $65,427,143 |
| Liabilities | | | | |
| Futures contracts | $ 160,445 | $0 | $0 | $ 160,445 |
| Total liabilities | $ 160,445 | $0 | $0 | $ 160,445 |
Allspring VT Index Asset Allocation Fund | 33
Notes to financial statements (unaudited)
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.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.600% |
| Next $500 million | 0.550 |
| Next $2 billion | 0.500 |
| Next $2 billion | 0.475 |
| Next $5 billion | 0.440 |
| Over $10 billion | 0.430 |
For the six months ended June 30, 2022, the management fee was equivalent to an annual rate of 0.60% 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 ("Allspring Investments"),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 0.15% and declining to 0.10% as the average daily net assets of the Fund increase.
Administration fee
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 of 0.08% which is calculated based on the average daily net assets of Class 2 shares.
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed through April 30, 2023 to waive fees and/or reimburse management and administration fees to the extent necessary to cap the Fund’s expenses at 1.00% for Class 2 shares. 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.
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
34 | Allspring VT Index Asset Allocation Fund
Notes to financial statements (unaudited)
Interfund transactions
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.
5. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2022 were as follows:
| Purchases at cost | | Sales proceeds |
U.S.
government | Non-U.S.
government | | U.S.
government | Non-U.S.
government |
| $0 | $1,073,879 | | $2,825,569 | $2,320,195 |
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund did not have any securities on loan.
7. DERIVATIVE TRANSACTIONS
During the six months ended June 30, 2022, the Fund entered into futures contracts to gain market exposure to certain asset classes consistent with an active asset allocation strategy. The Fund had an average notional amount of $21,792,320 in long futures contracts and $6,860,214 in short futures contracts during the six months ended June 30, 2022.
The fair value of derivative instruments as of June 30, 2022 by primary risk type was as follows for the Fund:
| | Asset derivatives | | Liability derivatives |
| | Statement of Assets and Liabilities location | Fair value | | Statement of Assets and Liabilities location | Fair value |
| Interest rate risk | Unrealized gains on futures contracts | $ 84,198* | | Unrealized losses on futures contracts | $ 157,598* |
| Equity risk | Unrealized gains on futures contracts | 20,339* | | Unrealized losses on futures contracts | 2,847* |
| | | $104,537 | | | $160,445 |
* Amount represents the cumulative unrealized gains (losses) as reported in the table following the Portfolio of Investments. For futures contracts, only the current day's variation margin as of June 30, 2022 is reported separately on the Statement of Assets and Liabilities.
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2022 was as follows:
| | Net realized
gains (losses) on
derivatives | Net change in unrealized
gains (losses) on
derivatives |
| Interest rate risk | $ (40,143) | $ (83,632) |
| Equity risk | (675,097) | (46,406) |
| | $(715,240) | $(130,038) |
Allspring VT Index Asset Allocation Fund | 35
Notes to financial statements (unaudited)
8. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $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 in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
9. CONCENTRATION RISKS
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.
10. INDEMNIFICATION
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.
11. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
36 | Allspring VT Index Asset Allocation Fund
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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 VT Index Asset Allocation Fund | 37
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
38 | Allspring VT Index Asset Allocation Fund
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring VT Index Asset Allocation Fund | 39
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
40 | Allspring VT Index Asset Allocation Fund
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring VT Index Asset Allocation Fund | 41
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: 1-800-260-5969
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00681 08-22
SVT2/SAR136 06-22
Semi-Annual Report
June 30, 2022
Allspring
VT International Equity Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT International Equity Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT International Equity Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT International Equity Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT International Equity Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT International Equity Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Venkateshwar (Venk) Lal, Dale A. Winner, CFA®‡ |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 1 | 8-17-1998 | -17.83 | 0.50 | 4.57 | 1.13 | 0.69 |
| Class 2 | 7-31-2002 | -18.38 | 0.17 | 4.26 | 1.38 | 0.94 |
| MSCI ACWI ex USA Index (Net)3 | – | -19.42 | 2.50 | 4.83 | – | – |
| MSCI ACWI ex USA Value Index (Net)4 | – | -12.77 | 1.23 | 3.76 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.69% for Class 1 shares and 0.94% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market- capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 4 | The MSCI ACWI ex USA Value Index (Net) measures the equity market performance of large- and mid-cap securities exhibiting overall value style characteristics across developed and emerging market countries, excluding the U.S. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price, and dividend yield. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring VT International Equity Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Sanofi SA | 3.24 |
| SK Telecom Company Limited | 3.20 |
| LONGi Green Energy Technology Company Limited Class A | 3.14 |
| Check Point Software Technologies Limited | 3.07 |
| Informa plc | 2.97 |
| NN Group NV | 2.94 |
| Rheinmetall AG | 2.85 |
| DNB Bank ASA | 2.82 |
| Asahi Breweries Limited | 2.80 |
| ORIX Corporation | 2.80 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
| Geographic allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
Allspring VT International Equity Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 1 | | | | |
| Actual | $1,000.00 | $ 852.04 | $3.17 | 0.69% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.46 | 0.69% |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 847.29 | $4.31 | 0.94% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.71 | 0.94% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT International Equity Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | | Shares | Value |
| Common stocks: 97.50% | | | | | | |
| Australia: 1.74% | | | | | | |
| Qantas Airways Limited (Industrials, Airlines) † | | | | | 335,638 | $ 1,035,584 |
| Brazil: 2.10% | | | | | | |
| CPFL Energia SA (Utilities, Electric utilities) | | | | | 211,500 | 1,247,957 |
| Canada: 1.83% | | | | | | |
| Home Capital Group Incorporated (Financials, Thrifts & mortgage finance) | | | | | 12,100 | 228,990 |
| SNC-Lavalin Group Incorporated (Industrials, Construction & engineering) | | | | | 50,100 | 861,726 |
| | | | | | | 1,090,716 |
| China: 11.13% | | | | | | |
| China Resources Land Limited (Real estate, Real estate management & development) | | | | | 264,000 | 1,231,381 |
| LONGi Green Energy Technology Company Limited Class A (Information technology, Semiconductors & semiconductor equipment) | | | | | 188,018 | 1,871,389 |
| Midea Group Company Limited Class A (Consumer discretionary, Household durables) | | | | | 167,398 | 1,510,115 |
| Oppein Home Group Incorporated Class A (Consumer discretionary, Household durables) | | | | | 40,940 | 921,506 |
| Topsports International Holdings Limited (Consumer discretionary, Specialty retail) 144A | | | | | 1,202,000 | 1,092,198 |
| | | | | | | 6,626,589 |
| France: 7.13% | | | | | | |
| Compagnie de Saint-Gobain SA (Industrials, Building products) | | | | | 23,981 | 1,028,984 |
| Sanofi SA (Health care, Pharmaceuticals) | | | | | 19,092 | 1,927,519 |
| Sodexho Alliance SA (Consumer discretionary, Hotels, restaurants & leisure) | | | | | 18,338 | 1,288,713 |
| | | | | | | 4,245,216 |
| Germany: 3.27% | | | | | | |
| Rheinmetall AG (Industrials, Industrial conglomerates) | | | | | 7,350 | 1,696,846 |
| Siemens AG (Industrials, Industrial conglomerates) | | | | | 2,089 | 212,546 |
| Siemens Energy AG (Industrials, Electrical equipment) | | | | | 2,465 | 36,126 |
| | | | | | | 1,945,518 |
| Hong Kong: 0.88% | | | | | | |
| Xinyi Glass Holdings Limited (Consumer discretionary, Auto components) | | | | | 219,000 | 525,256 |
| India: 1.45% | | | | | | |
| Tech Mahindra Limited (Information technology, IT services) | | | | | 68,116 | 862,528 |
| Ireland: 0.89% | | | | | | |
| Greencore Group plc (Consumer staples, Food products) † | | | | | 440,166 | 532,063 |
| Israel: 3.07% | | | | | | |
| Check Point Software Technologies Limited (Information technology, Software) † | | | | | 15,001 | 1,826,822 |
| Italy: 4.74% | | | | | | |
| Prysmian SpA (Industrials, Electrical equipment) | | | | | 57,057 | 1,567,171 |
| UniCredit SpA (Financials, Banks) | | | | | 131,998 | 1,253,937 |
| | | | | | | 2,821,108 |
| Japan: 12.05% | | | | | | |
| Asahi Breweries Limited (Consumer staples, Beverages) | | | | | 50,800 | 1,664,255 |
The accompanying notes are an integral part of these financial statements.
Allspring VT International Equity Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | | Shares | Value |
| Japan: (continued) | | | | | | |
| Hitachi Limited (Industrials, Industrial conglomerates) | | | | | 31,100 | $ 1,475,691 |
| Mitsubishi UFJ Financial Group Incorporated (Financials, Banks) | | | | | 271,700 | 1,460,628 |
| ORIX Corporation (Financials, Diversified financial services) | | | | | 99,200 | 1,664,057 |
| Showa Denko KK (Materials, Chemicals) | | | | | 53,300 | 905,880 |
| | | | | | | 7,170,511 |
| Netherlands: 6.79% | | | | | | |
| CNH Industrial NV (Industrials, Machinery) | | | | | 51,043 | 589,465 |
| ING Groep NV (Financials, Banks) | | | | | 113,562 | 1,122,358 |
| NN Group NV (Financials, Insurance) | | | | | 38,598 | 1,753,050 |
| OCI NV (Materials, Chemicals) | | | | | 17,519 | 577,942 |
| | | | | | | 4,042,815 |
| Norway: 2.82% | | | | | | |
| DNB Bank ASA (Financials, Banks) | | | | | 93,723 | 1,679,929 |
| South Korea: 7.28% | | | | | | |
| Coway Company Limited (Consumer discretionary, Household durables) | | | | | 14,645 | 720,745 |
| Hana Financial Group Incorporated (Financials, Banks) | | | | | 12,351 | 374,316 |
| Samsung Electronics Company Limited GDR (Information technology, Technology hardware, storage & peripherals) 144A | | | | | 1,026 | 1,119,366 |
| SK Square Company Limited (Information technology, Semiconductors & semiconductor equipment) † | | | | | 7,226 | 217,325 |
| SK Telecom Company Limited (Communication services, Wireless telecommunication services) | | | | | 47,521 | 1,903,182 |
| | | | | | | 4,334,934 |
| Thailand: 4.44% | | | | | | |
| Minor International PCL (Consumer discretionary, Hotels, restaurants & leisure) † | | | | | 1,221,100 | 1,174,301 |
| SCB X PCL (Financials, Banks) | | | | | 487,800 | 1,469,402 |
| | | | | | | 2,643,703 |
| United Kingdom: 16.25% | | | | | | |
| ConvaTec Group plc (Health care, Health care equipment & supplies) 144A | | | | | 476,417 | 1,301,391 |
| Entain plc (Consumer discretionary, Hotels, restaurants & leisure) † | | | | | 49,435 | 749,207 |
| Informa plc (Communication services, Media) † | | | | | 274,879 | 1,769,419 |
| Melrose Industries plc (Industrials, Industrial conglomerates) | | | | | 523,466 | 953,911 |
| NatWest Group plc (Financials, Banks) | | | | | 529,380 | 1,406,757 |
| Nomad Foods Limited (Consumer staples, Food products) † | | | | | 78,007 | 1,559,360 |
| Sensata Technologies Holding plc (Industrials, Electrical equipment) | | | | | 18,026 | 744,654 |
| Shell plc (Energy, Oil, gas & consumable fuels) | | | | | 45,824 | 1,190,379 |
| | | | | | | 9,675,078 |
| United States: 9.64% | | | | | | |
| Axalta Coating Systems Limited (Materials, Chemicals) † | | | | | 43,728 | 966,826 |
| Baker Hughes Incorporated (Energy, Energy equipment & services) | | | | | 51,275 | 1,480,309 |
| Berry Global Group Incorporated (Materials, Containers & packaging) † | | | | | 9,415 | 514,436 |
| Cognex Corporation (Information technology, Electronic equipment, instruments & components) | | | | | 16,535 | 703,068 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT International Equity Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | | Shares | Value |
| United States: (continued) | | | | | | |
| Gentex Corporation (Consumer discretionary, Auto components) | | | | | 20,838 | $ 582,839 |
| Samsonite International SA (Consumer discretionary, Textiles, apparel & luxury goods) 144A† | | | | | 747,290 | 1,487,571 |
| | | | | | | 5,735,049 |
| Total Common stocks (Cost $63,084,527) | | | | | | 58,041,376 |
| | | Yield | | | | |
| Short-term investments: 3.50% | | | | | | |
| Investment companies: 3.50% | | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | | 2,081,572 | 2,081,572 |
| Total Short-term investments (Cost $2,081,572) | | | | | | 2,081,572 |
| Total investments in securities (Cost $65,166,099) | 101.00% | | | | | 60,122,948 |
| Other assets and liabilities, net | (1.00) | | | | | (592,483) |
| Total net assets | 100.00% | | | | | $59,530,465 |
| † | Non-income-earning security |
| 144A | 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. |
| ♠ | 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. |
| Abbreviations: |
| GDR | Global 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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $474,235 | $13,792,344 | $(12,185,007) | $0 | | $0 | | $ 2,081,572 | 2,081,572 | $ 3,635 |
Investments in affiliates no longer
held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 0 | 7,499,923 | (7,499,923) | 0 | | 0 | | 0 | 0 | 1,352 # |
| | | | | $0 | | $0 | | $2,081,572 | | $4,987 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
Allspring VT International Equity Fund | 11
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $63,084,527)
| $ 58,041,376 |
Investments in affiliated securities, at value (cost $2,081,572)
| 2,081,572 |
Foreign currency, at value (cost $91,728)
| 91,423 |
Receivable for dividends
| 401,053 |
Receivable for investments sold
| 288,997 |
Receivable for Fund shares sold
| 911 |
Receivable for securities lending income, net
| 77 |
Prepaid expenses and other assets
| 1,104 |
Total assets
| 60,906,513 |
| Liabilities | |
Payable for investments purchased
| 1,212,713 |
Payable for Fund shares redeemed
| 82,884 |
Management fee payable
| 13,770 |
Distribution fee payable
| 10,029 |
Administration fees payable
| 4,085 |
Trustees’ fees and expenses payable
| 3,450 |
Accrued expenses and other liabilities
| 49,117 |
Total liabilities
| 1,376,048 |
Total net assets
| $59,530,465 |
| Net assets consist of | |
Paid-in capital
| $ 64,733,231 |
Total distributable loss
| (5,202,766) |
Total net assets
| $59,530,465 |
| Computation of net asset value per share | |
Net assets – Class 1
| $ 12,697,200 |
Shares outstanding – Class 11
| 7,616,885 |
Net asset value per share – Class 1
| $1.67 |
Net assets – Class 2
| $ 46,833,265 |
Shares outstanding – Class 21
| 27,176,317 |
Net asset value per share – Class 2
| $1.72 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT International Equity Fund
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $104,658)
| $ 1,059,512 |
Income from affiliated securities
| 9,683 |
Total investment income
| 1,069,195 |
| Expenses | |
Management fee
| 266,397 |
| Administration fees | |
Class 1
| 5,777 |
Class 2
| 20,863 |
| Distribution fee | |
Class 2
| 65,120 |
Custody and accounting fees
| 32,622 |
Professional fees
| 27,939 |
Shareholder report expenses
| 24,230 |
Trustees’ fees and expenses
| 10,122 |
Other fees and expenses
| 12,744 |
Total expenses
| 465,814 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (170,565) |
Net expenses
| 295,249 |
Net investment income
| 773,946 |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments
| 131,150 |
Net change in unrealized gains (losses) on investments
| (11,557,366) |
Net realized and unrealized gains (losses) on investments
| (11,426,216) |
Net decrease in net assets resulting from operations
| $(10,652,270) |
The accompanying notes are an integral part of these financial statements.
Allspring VT International Equity Fund | 13
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment income
| | $ 773,946 | | $ 1,438,545 |
Net realized gains on investments
| | 131,150 | | 8,785,320 |
Net change in unrealized gains (losses) on investments
| | (11,557,366) | | (4,975,819) |
Net increase (decrease) in net assets resulting from operations
| | (10,652,270) | | 5,248,046 |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class 1
| | 0 | | (234,100) |
Class 2
| | 0 | | (636,482) |
Total distributions to shareholders
| | 0 | | (870,582) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class 1
| 153,736 | 316,698 | 428,824 | 852,667 |
Class 2
| 382,430 | 743,925 | 1,124,312 | 2,325,463 |
| | | 1,060,623 | | 3,178,130 |
| Reinvestment of distributions | | | | |
Class 1
| 0 | 0 | 117,638 | 234,100 |
Class 2
| 0 | 0 | 307,479 | 636,482 |
| | | 0 | | 870,582 |
| Payment for shares redeemed | | | | |
Class 1
| (720,259) | (1,323,129) | (1,801,937) | (3,540,869) |
Class 2
| (1,214,449) | (2,318,680) | (3,293,961) | (6,748,163) |
| | | (3,641,809) | | (10,289,032) |
Net decrease in net assets resulting from capital share transactions
| | (2,581,186) | | (6,240,320) |
Total decrease in net assets
| | (13,233,456) | | (1,862,856) |
| Net assets | | | | |
Beginning of period
| | 72,763,921 | | 74,626,777 |
End of period
| | $ 59,530,465 | | $ 72,763,921 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT International Equity Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 1 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $1.96 | $1.85 | $1.83 | $2.85 | $5.34 | $4.41 |
Net investment income
| 0.02 | 0.04 | 0.03 1 | 0.06 1 | 0.10 1 | 0.12 1 |
Net realized and unrealized gains (losses) on investments
| (0.31) | 0.10 | 0.04 | 0.34 | (0.77) | 0.96 |
Total from investment operations
| (0.29) | 0.14 | 0.07 | 0.40 | (0.67) | 1.08 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.03) | (0.05) | (0.13) | (0.61) | (0.15) |
Net realized gains
| 0.00 | 0.00 | 0.00 | (1.29) | (1.21) | 0.00 |
Total distributions to shareholders
| 0.00 | (0.03) | (0.05) | (1.42) | (1.82) | (0.15) |
Net asset value, end of period
| $1.67 | $1.96 | $1.85 | $1.83 | $2.85 | $5.34 |
Total return2
| (14.80)% | 7.39% | 4.31% | 16.14% | (16.86)% | 24.86% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.20% | 1.13% | 1.13% | 1.13% | 1.12% | 0.95% |
Net expenses
| 0.69% | 0.69% | 0.69% | 0.69% | 0.69% | 0.69% |
Net investment income
| 2.51% | 2.07% | 1.59% | 2.55% | 2.41% | 2.41% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 34% | 65% | 80% | 48% | 51% | 55% |
Net assets, end of period (000s omitted)
| $12,697 | $16,019 | $17,459 | $19,872 | $19,315 | $28,001 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
Allspring VT International Equity Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $2.03 | $1.91 | $1.89 | $2.89 | $5.38 | $4.45 |
Net investment income
| 0.02 | 0.04 | 0.03 1 | 0.05 1 | 0.09 1 | 0.11 1 |
Net realized and unrealized gains (losses) on investments
| (0.33) | 0.10 | 0.03 | 0.36 | (0.78) | 0.96 |
Total from investment operations
| (0.31) | 0.14 | 0.06 | 0.41 | (0.69) | 1.07 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.02) | (0.04) | (0.12) | (0.59) | (0.14) |
Net realized gains
| 0.00 | 0.00 | 0.00 | (1.29) | (1.21) | 0.00 |
Total distributions to shareholders
| 0.00 | (0.02) | (0.04) | (1.41) | (1.80) | (0.14) |
Net asset value, end of period
| $1.72 | $2.03 | $1.91 | $1.89 | $2.89 | $5.38 |
Total return2
| (15.27)% | 7.43% | 3.83% | 16.10% | (17.28)% | 24.34% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.45% | 1.38% | 1.38% | 1.38% | 1.30% | 1.20% |
Net expenses
| 0.94% | 0.94% | 0.94% | 0.94% | 0.94% | 0.94% |
Net investment income
| 2.27% | 1.83% | 1.34% | 2.30% | 1.82% | 2.18% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 34% | 65% | 80% | 48% | 51% | 55% |
Net assets, end of period (000s omitted)
| $46,833 | $56,744 | $57,167 | $61,907 | $59,004 | $318,202 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT International Equity Fund
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT International Equity Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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 Allspring Global Investments Pricing 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 approved by the Board of Trustees of the Fund 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 June 30, 2022, such fair value pricing was not used in pricing foreign securities.
Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign currency pricing source at a time each business day specified by the Allspring Global Investments Pricing Committee.
Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate.
Allspring VT International Equity Fund | 17
Notes to financial statements (unaudited)
On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
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 Allspring Global Investments Pricing 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.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the counterparty.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
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. generally accepted accounting principles. 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.
18 | Allspring VT International Equity 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 June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $65,654,643 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 3,676,491 |
| Gross unrealized losses | (9,208,186) |
| Net unrealized losses | $(5,531,695) |
As of December 31, 2021, the Fund had capital loss carryforwards which consisted of $318,230 in short-term capital losses and $1,722,342 in long-term capital losses.
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution 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 VT International Equity Fund | 19
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Australia | $ 1,035,584 | $0 | $0 | $ 1,035,584 |
| Brazil | 1,247,957 | 0 | 0 | 1,247,957 |
| Canada | 1,090,716 | 0 | 0 | 1,090,716 |
| China | 6,626,589 | 0 | 0 | 6,626,589 |
| France | 4,245,216 | 0 | 0 | 4,245,216 |
| Germany | 1,945,518 | 0 | 0 | 1,945,518 |
| Hong Kong | 525,256 | 0 | 0 | 525,256 |
| India | 862,528 | 0 | 0 | 862,528 |
| Ireland | 532,063 | 0 | 0 | 532,063 |
| Israel | 1,826,822 | 0 | 0 | 1,826,822 |
| Italy | 2,821,108 | 0 | 0 | 2,821,108 |
| Japan | 7,170,511 | 0 | 0 | 7,170,511 |
| Netherlands | 4,042,815 | 0 | 0 | 4,042,815 |
| Norway | 1,679,929 | 0 | 0 | 1,679,929 |
| South Korea | 4,334,934 | 0 | 0 | 4,334,934 |
| Thailand | 2,643,703 | 0 | 0 | 2,643,703 |
| United Kingdom | 9,675,078 | 0 | 0 | 9,675,078 |
| United States | 5,735,049 | 0 | 0 | 5,735,049 |
| Short-term investments | | | | |
| Investment companies | 2,081,572 | 0 | 0 | 2,081,572 |
| Total assets | $60,122,948 | $0 | $0 | $60,122,948 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.800% |
| Next $500 million | 0.750 |
| Next $1 billion | 0.700 |
| Next $2 billion | 0.675 |
| Next $1 billion | 0.650 |
| Next $5 billion | 0.640 |
| Over $10 billion | 0.630 |
20 | Allspring VT International Equity Fund
Notes to financial statements (unaudited)
For the six months ended June 30, 2022, 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 ("Allspring Investments"), 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 0.40% as the average daily net assets of the Fund increase.
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 services and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee of 0.08% which is calculated based on the average daily net assets of each class.
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 April 30, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. As of June 30, 2022, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class 1 | 0.69% |
| Class 2 | 0.94 |
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
Interfund transactions
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.
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 June 30, 2022 were $22,739,381 and $25,314,065, respectively.
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
Allspring VT International Equity Fund | 21
Notes to financial statements (unaudited)
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund did not have any securities on loan.
7. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $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 in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in Asia/Pacific ex-Japan and Europe. A fund that invests a substantial portion of its assets in any geographic region may be more affected by changes in that geographic region than would be a fund whose investments are not heavily weighted in any geographic region.
9. INDEMNIFICATION
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.
10. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
22 | Allspring VT International Equity Fund
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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 VT International Equity Fund | 23
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
24 | Allspring VT International Equity Fund
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring VT International Equity Fund | 25
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
26 | Allspring VT International Equity Fund
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring VT International Equity Fund | 27
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: 1-800-260-5969
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00683 08-22
SVT3/SAR140 06-22
Semi-Annual Report
June 30, 2022
Allspring
VT Omega Growth Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT Omega Growth Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT Omega Growth Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT Omega Growth Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT Omega Growth Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT Omega Growth Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Michael T. Smith, CFA®‡, Christopher J. Warner, CFA®‡ |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 1 | 3-6-1997 | -33.09 | 10.61 | 12.09 | 0.78 | 0.75 |
| Class 2 | 7-31-2002 | -33.22 | 10.36 | 11.83 | 1.03 | 1.00 |
| Russell 3000® Growth Index3 | – | -19.78 | 13.63 | 14.41 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class 1 shares and 1.00% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | The Russell 3000® Growth Index measures the performance of those Russell 3000® Index companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. This fund is exposed to smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring VT Omega Growth Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Microsoft Corporation | 10.81 |
| Amazon.com Incorporated | 7.13 |
| Alphabet Incorporated Class A | 6.80 |
| Visa Incorporated Class A | 5.08 |
| The Home Depot Incorporated | 2.93 |
| UnitedHealth Group Incorporated | 2.64 |
| Cadence Design Systems Incorporated | 2.48 |
| ServiceNow Incorporated | 2.30 |
| Waste Connections Incorporated | 2.28 |
| Union Pacific Corporation | 2.26 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
Allspring VT Omega Growth Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 1 | | | | |
| Actual | $1,000.00 | $ 636.61 | $3.04 | 0.75% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 636.12 | $3.93 | 0.97% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.98 | $4.86 | 0.97% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT Omega Growth Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Common stocks: 98.15% | | | | | |
| Communication services: 12.75% | | | | | |
| Entertainment: 2.91% | | | | | |
| Roku Incorporated † | | | | 3,900 | $ 320,346 |
| Spotify Technology SA † | | | | 8,600 | 806,938 |
| Warner Music Group Corporation Class A | | | | 28,200 | 686,952 |
| | | | | | 1,814,236 |
| Interactive media & services: 9.84% | | | | | |
| Alphabet Incorporated Class A † | | | | 1,945 | 4,238,661 |
| Alphabet Incorporated Class C † | | | | 184 | 402,491 |
| Match Group Incorporated † | | | | 12,187 | 849,312 |
| ZoomInfo Technologies Incorporated † | | | | 19,200 | 638,208 |
| | | | | | 6,128,672 |
| Consumer discretionary: 17.27% | | | | | |
| Auto components: 1.09% | | | | | |
| Aptiv plc † | | | | 7,600 | 676,932 |
| Automobiles: 1.32% | | | | | |
| Ferrari NV | | | | 4,500 | 825,660 |
| Hotels, restaurants & leisure: 1.91% | | | | | |
| Chipotle Mexican Grill Incorporated † | | | | 910 | 1,189,607 |
| Internet & direct marketing retail: 8.84% | | | | | |
| Amazon.com Incorporated † | | | | 41,840 | 4,443,826 |
| Doordash Incorporated † | | | | 5,000 | 320,850 |
| MercadoLibre Incorporated † | | | | 1,163 | 740,680 |
| | | | | | 5,505,356 |
| Specialty retail: 2.93% | | | | | |
| The Home Depot Incorporated | | | | 6,651 | 1,824,170 |
| Textiles, apparel & luxury goods: 1.18% | | | | | |
| lululemon athletica Incorporated † | | | | 2,700 | 736,047 |
| Financials: 2.74% | | | | | |
| Capital markets: 2.74% | | | | | |
| Intercontinental Exchange Incorporated | | | | 10,000 | 940,400 |
| MarketAxess Holdings Incorporated | | | | 2,999 | 767,774 |
| | | | | | 1,708,174 |
| Health care: 13.41% | | | | | |
| Health care equipment & supplies: 8.42% | | | | | |
| Abiomed Incorporated † | | | | 2,600 | 643,526 |
| Align Technology Incorporated † | | | | 3,100 | 733,677 |
| DexCom Incorporated † | | | | 14,000 | 1,043,420 |
| Edwards Lifesciences Corporation † | | | | 9,800 | 931,882 |
| Inari Medical Incorporated † | | | | 12,400 | 843,076 |
| Intuitive Surgical Incorporated † | | | | 5,240 | 1,051,720 |
| | | | | | 5,247,301 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Omega Growth Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Health care providers & services: 4.43% | | | | | |
| Centene Corporation † | | | | 13,200 | $ 1,116,852 |
| UnitedHealth Group Incorporated | | | | 3,196 | 1,641,561 |
| | | | | | 2,758,413 |
| Life sciences tools & services: 0.56% | | | | | |
| Bio-Techne Corporation | | | | 1,000 | 346,640 |
| Industrials: 7.37% | | | | | |
| Commercial services & supplies: 2.28% | | | | | |
| Waste Connections Incorporated | | | | 11,446 | 1,418,846 |
| Machinery: 1.20% | | | | | |
| Deere & Company | | | | 2,500 | 748,675 |
| Professional services: 1.63% | | | | | |
| Equifax Incorporated | | | | 5,550 | 1,014,429 |
| Road & rail: 2.26% | | | | | |
| Union Pacific Corporation | | | | 6,600 | 1,407,648 |
| Information technology: 40.71% | | | | | |
| Communications equipment: 1.78% | | | | | |
| Motorola Solutions Incorporated | | | | 5,300 | 1,110,880 |
| Electronic equipment, instruments & components: 3.88% | | | | | |
| Cognex Corporation | | | | 13,400 | 569,768 |
| Teledyne Technologies Incorporated † | | | | 2,800 | 1,050,308 |
| Zebra Technologies Corporation Class A † | | | | 2,700 | 793,665 |
| | | | | | 2,413,741 |
| IT services: 13.19% | | | | | |
| Adyen NV ADR † | | | | 42,000 | 613,620 |
| Fiserv Incorporated † | | | | 12,160 | 1,081,875 |
| Globant SA † | | | | 2,600 | 452,400 |
| MongoDB Incorporated † | | | | 3,400 | 882,300 |
| PayPal Holdings Incorporated † | | | | 11,741 | 819,991 |
| Snowflake Incorporated Class A † | | | | 3,500 | 486,710 |
| Square Incorporated Class A † | | | | 11,582 | 711,830 |
| Visa Incorporated Class A | | | | 16,090 | 3,167,960 |
| | | | | | 8,216,686 |
| Semiconductors & semiconductor equipment: 1.20% | | | | | |
| Advanced Micro Devices Incorporated † | | | | 9,800 | 749,406 |
| Software: 20.66% | | | | | |
| Atlassian Corporation plc Class A † | | | | 4,193 | 785,768 |
| Bill.com Holdings Incorporated † | | | | 6,700 | 736,598 |
| Cadence Design Systems Incorporated † | | | | 10,300 | 1,545,309 |
| Crowdstrike Holdings Incorporated Class A † | | | | 5,700 | 960,792 |
| Datadog Incorporated Class A † | | | | 7,100 | 676,204 |
| Microsoft Corporation | | | | 26,223 | 6,734,854 |
| ServiceNow Incorporated † | | | | 3,010 | 1,431,315 |
| | | | | | 12,870,840 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT Omega Growth Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Materials: 2.00% | | | | | |
| Chemicals: 2.00% | | | | | |
| The Sherwin-Williams Company | | | | 5,570 | $ 1,247,179 |
| Real estate: 1.90% | | | | | |
| Equity REITs: 1.90% | | | | | |
| SBA Communications Corporation | | | | 3,700 | 1,184,185 |
| Total Common stocks (Cost $42,114,633) | | | | | 61,143,723 |
| | | Yield | | | |
| Short-term investments: 2.00% | | | | | |
| Investment companies: 2.00% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | 1,248,075 | 1,248,075 |
| Total Short-term investments (Cost $1,248,075) | | | | | 1,248,075 |
| Total investments in securities (Cost $43,362,708) | 100.15% | | | | 62,391,798 |
| Other assets and liabilities, net | (0.15) | | | | (95,521) |
| Total net assets | 100.00% | | | | $62,296,277 |
| † | 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. |
| Abbreviations: |
| ADR | American depositary receipt |
| REIT | Real estate investment trust |
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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $1,155,987 | $11,092,460 | $(11,000,372) | $0 | | $0 | | $ 1,248,075 | 1,248,075 | $ 1,712 |
Investments in affiliates no longer
held at end of period | | | | | | | | | | |
| Securities Lending Cash Investments LLC | 606,100 | 17,400 | (623,500) | 0 | | 0 | | 0 | 0 | 7 # |
| | | | | $0 | | $0 | | $1,248,075 | | $1,719 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Omega Growth Fund | 11
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities, at value (cost $42,114,633)
| $ 61,143,723 |
Investments in affiliated securities, at value (cost $1,248,075)
| 1,248,075 |
Receivable for Fund shares sold
| 16,194 |
Receivable for dividends
| 11,025 |
Prepaid expenses and other assets
| 761 |
Total assets
| 62,419,778 |
| Liabilities | |
Payable for Fund shares redeemed
| 42,789 |
Management fee payable
| 26,459 |
Professional fees payable
| 18,483 |
Distribution fee payable
| 6,731 |
Administration fees payable
| 4,247 |
Trustees’ fees and expenses payable
| 1,718 |
Accrued expenses and other liabilities
| 23,074 |
Total liabilities
| 123,501 |
Total net assets
| $62,296,277 |
| Net assets consist of | |
Paid-in capital
| $ 20,060,299 |
Total distributable earnings
| 42,235,978 |
Total net assets
| $62,296,277 |
| Computation of net asset value per share | |
Net assets – Class 1
| $ 28,767,470 |
Shares outstanding – Class 11
| 1,033,942 |
Net asset value per share – Class 1
| $27.82 |
Net assets – Class 2
| $ 33,528,807 |
Shares outstanding – Class 21
| 1,264,431 |
Net asset value per share – Class 2
| $26.52 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT Omega Growth Fund
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $1,406)
| $ 156,083 |
Income from affiliated securities
| 1,746 |
Total investment income
| 157,829 |
| Expenses | |
Management fee
| 233,141 |
| Administration fees | |
Class 1
| 14,491 |
Class 2
| 16,594 |
| Distribution fee | |
Class 2
| 37,809 |
Custody and accounting fees
| 6,015 |
Professional fees
| 23,590 |
Shareholder report expenses
| 14,597 |
Trustees’ fees and expenses
| 10,122 |
Other fees and expenses
| 1,001 |
Total expenses
| 357,360 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (15,367) |
Class 1
| (5,924) |
Net expenses
| 336,069 |
Net investment loss
| (178,240) |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments
| 7,059,431 |
Net change in unrealized gains (losses) on investments
| (43,928,249) |
Net realized and unrealized gains (losses) on investments
| (36,868,818) |
Net decrease in net assets resulting from operations
| $(37,047,058) |
The accompanying notes are an integral part of these financial statements.
Allspring VT Omega Growth Fund | 13
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment loss
| | $ (178,240) | | $ (615,444) |
Net realized gains on investments
| | 7,059,431 | | 16,445,379 |
Net change in unrealized gains (losses) on investments
| | (43,928,249) | | (345,019) |
Net increase (decrease) in net assets resulting from operations
| | (37,047,058) | | 15,484,916 |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class 1
| | 0 | | (5,286,804) |
Class 2
| | 0 | | (6,226,350) |
Total distributions to shareholders
| | 0 | | (11,513,154) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class 1
| 6,491 | 207,541 | 39,946 | 1,745,185 |
Class 2
| 50,057 | 1,649,983 | 78,152 | 3,228,891 |
| | | 1,857,524 | | 4,974,076 |
| Reinvestment of distributions | | | | |
Class 1
| 0 | 0 | 126,388 | 5,286,804 |
Class 2
| 0 | 0 | 155,815 | 6,226,350 |
| | | 0 | | 11,513,154 |
| Payment for shares redeemed | | | | |
Class 1
| (92,761) | (3,148,663) | (231,730) | (10,127,284) |
Class 2
| (222,142) | (8,202,851) | (228,150) | (9,466,450) |
| | | (11,351,514) | | (19,593,734) |
Net decrease in net assets resulting from capital share transactions
| | (9,493,990) | | (3,106,504) |
Total increase (decrease) in net assets
| | (46,541,048) | | 865,258 |
| Net assets | | | | |
Beginning of period
| | 108,837,325 | | 107,972,067 |
End of period
| | $ 62,296,277 | | $108,837,325 |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT Omega Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 1 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $43.70 | $42.28 | $31.89 | $26.27 | $28.99 | $22.20 |
Net investment loss
| (0.00) 1 | (0.19) 2 | (0.07) | (0.03) 2 | (0.03) 2 | (0.02) 2 |
Net realized and unrealized gains (losses) on investments
| (15.88) | 6.43 | 13.27 | 9.69 | 0.62 | 7.68 |
Total from investment operations
| (15.88) | 6.24 | 13.20 | 9.66 | 0.59 | 7.66 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.06) |
Net realized gains
| 0.00 | (4.82) | (2.81) | (4.04) | (3.31) | (0.81) |
Total distributions to shareholders
| 0.00 | (4.82) | (2.81) | (4.04) | (3.31) | (0.87) |
Net asset value, end of period
| $27.82 | $43.70 | $42.28 | $31.89 | $26.27 | $28.99 |
Total return3
| (36.34)% | 15.27% | 43.41% | 37.39% | 0.52% | 34.95% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.82% | 0.78% | 0.80% | 0.82% | 0.81% | 0.82% |
Net expenses
| 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment loss
| (0.34)% | (0.43)% | (0.27)% | (0.08)% | (0.10)% | (0.07)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 25% | 24% | 31% | 46% | 67% |
Net assets, end of period (000s omitted)
| $28,767 | $48,949 | $50,122 | $40,001 | $33,043 | $38,687 |
| 1 | Amount is more than $(0.005) |
| 2 | Calculated based upon average shares outstanding |
| 3 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Omega Growth Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $41.69 | $40.43 | $30.55 | $25.23 | $27.91 | $21.38 |
Net investment loss
| (0.09) 1 | (0.28) | (0.17) 1 | (0.10) 1 | (0.11) | (0.08) 1 |
Net realized and unrealized gains (losses) on investments
| (15.08) | 6.14 | 12.73 | 9.29 | 0.61 | 7.39 |
Total from investment operations
| (15.17) | 5.86 | 12.56 | 9.19 | 0.50 | 7.31 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | (0.00) 2 |
Net realized gains
| 0.00 | (4.60) | (2.68) | (3.87) | (3.18) | (0.78) |
Total distributions to shareholders
| 0.00 | (4.60) | (2.68) | (3.87) | (3.18) | (0.78) |
Net asset value, end of period
| $26.52 | $41.69 | $40.43 | $30.55 | $25.23 | $27.91 |
Total return3
| (36.39)% | 14.97% | 43.18% | 37.04% | 0.28% | 34.60% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.00% | 1.02% | 1.04% | 1.06% | 1.06% | 1.07% |
Net expenses
| 0.97% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment loss
| (0.56)% | (0.68)% | (0.52)% | (0.33)% | (0.35)% | (0.31)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 14% | 25% | 24% | 31% | 46% | 67% |
Net assets, end of period (000s omitted)
| $33,529 | $59,888 | $57,850 | $50,843 | $48,500 | $54,334 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Amount is less than $0.005. |
| 3 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT Omega Growth Fund
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT Omega Growth Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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 are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or
Allspring VT Omega Growth Fund | 17
Notes to financial statements (unaudited)
costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
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. generally accepted accounting principles. 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.
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 June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $43,219,742 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $27,486,062 |
| Gross unrealized losses | (8,314,006) |
| Net unrealized gains | $19,172,056 |
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution 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.
18 | Allspring VT Omega 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 June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 7,942,908 | $0 | $0 | $ 7,942,908 |
| Consumer discretionary | 10,757,772 | 0 | 0 | 10,757,772 |
| Financials | 1,708,174 | 0 | 0 | 1,708,174 |
| Health care | 8,352,354 | 0 | 0 | 8,352,354 |
| Industrials | 4,589,598 | 0 | 0 | 4,589,598 |
| Information technology | 25,361,553 | 0 | 0 | 25,361,553 |
| Materials | 1,247,179 | 0 | 0 | 1,247,179 |
| Real estate | 1,184,185 | 0 | 0 | 1,184,185 |
| Short-term investments | | | | |
| Investment companies | 1,248,075 | 0 | 0 | 1,248,075 |
| Total assets | $62,391,798 | $0 | $0 | $62,391,798 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.600% |
| Next $500 million | 0.550 |
| Next $1 billion | 0.500 |
| Next $2 billion | 0.475 |
| Next $1 billion | 0.450 |
| Next $5 billion | 0.440 |
| Over $10 billion | 0.430 |
For the six months ended June 30, 2022, the management fee was equivalent to an annual rate of 0.60% 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 ("Allspring Investments"), 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.
Allspring VT Omega Growth Fund | 19
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 services and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee of 0.08% which is calculated based on the average daily net assets of each class.
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 April 30, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. As of June 30, 2022, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class 1 | 0.75% |
| Class 2 | 1.00 |
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
Interfund transactions
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.
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 June 30, 2022 were $125,719,476 and $434,678,261, respectively.
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund did not have any securities on loan.
7. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $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
20 | Allspring VT Omega Growth Fund
Notes to financial statements (unaudited)
rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISKS
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.
9. INDEMNIFICATION
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.
10. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Allspring VT Omega Growth Fund | 21
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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.
22 | Allspring VT Omega Growth Fund
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Allspring VT Omega Growth Fund | 23
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
24 | Allspring VT Omega Growth Fund
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Allspring VT Omega Growth Fund | 25
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
26 | Allspring VT Omega 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: 1-800-260-5969
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00685 08-22
SVT5/SAR142 06-22
Semi-Annual Report
June 30, 2022
Allspring VT Opportunity Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT Opportunity Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT Opportunity Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT Opportunity Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT Opportunity Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT Opportunity Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Kurt Gunderson, Christopher G. Miller, CFA®‡ |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 1 3 | 8-26-2011 | -15.75 | 9.70 | 11.60 | 0.85 | 0.75 |
| Class 2 | 5-8-1992 | -15.95 | 9.44 | 11.33 | 1.10 | 1.00 |
| Russell 3000® Index4 | – | -13.87 | 10.60 | 12.57 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class 1 shares and 1.00% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | Historical performance shown for Class 1 shares prior to their inception reflects the performance of the Class 2 shares, and includes the higher expenses applicable to the Class 2 shares. If these expenses had not been included, returns for the Class 1 shares would be higher. |
| 4 | The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring VT Opportunity Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Apple Incorporated | 4.65 |
| Alphabet Incorporated Class C | 4.52 |
| Amazon.com Incorporated | 3.63 |
| Salesforce.com Incorporated | 2.72 |
| Texas Instruments Incorporated | 2.66 |
| MasterCard Incorporated Class A | 2.52 |
| Teledyne Technologies Incorporated | 2.18 |
| Meta Platforms Incorporated Class A | 2.13 |
| The Home Depot Incorporated | 2.02 |
| T-Mobile US Incorporated | 1.98 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
Allspring VT Opportunity Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 1 | | | | |
| Actual | $1,000.00 | $ 770.31 | $3.29 | 0.75% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 769.49 | $4.39 | 1.00% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT Opportunity Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Common stocks: 98.35% | | | | | |
| Communication services: 8.64% | | | | | |
| Interactive media & services: 6.66% | | | | | |
| Alphabet Incorporated Class C † | | | | 3,335 | $ 7,295,146 |
| Meta Platforms Incorporated Class A † | | | | 21,332 | 3,439,785 |
| | | | | | 10,734,931 |
| Wireless telecommunication services: 1.98% | | | | | |
| T-Mobile US Incorporated † | | | | 23,762 | 3,196,939 |
| Consumer discretionary: 11.30% | | | | | |
| Internet & direct marketing retail: 3.85% | | | | | |
| Amazon.com Incorporated † | | | | 55,085 | 5,850,578 |
| Farfetch Limited Class A † | | | | 50,946 | 364,773 |
| | | | | | 6,215,351 |
| Multiline retail: 1.95% | | | | | |
| Dollar General Corporation | | | | 12,780 | 3,136,723 |
| Specialty retail: 4.13% | | | | | |
| Burlington Stores Incorporated † | | | | 12,587 | 1,714,727 |
| The Home Depot Incorporated | | | | 11,882 | 3,258,876 |
| Ulta Beauty Incorporated † | | | | 4,371 | 1,684,933 |
| | | | | | 6,658,536 |
| Textiles, apparel & luxury goods: 1.37% | | | | | |
| Deckers Outdoor Corporation † | | | | 8,644 | 2,207,245 |
| Consumer staples: 2.66% | | | | | |
| Food & staples retailing: 1.34% | | | | | |
| Sysco Corporation | | | | 25,537 | 2,163,239 |
| Household products: 1.32% | | | | | |
| Church & Dwight Company Incorporated | | | | 22,929 | 2,124,601 |
| Financials: 5.60% | | | | | |
| Capital markets: 3.93% | | | | | |
| Intercontinental Exchange Incorporated | | | | 23,837 | 2,241,631 |
| S&P Global Incorporated | | | | 6,313 | 2,127,860 |
| The Charles Schwab Corporation | | | | 31,227 | 1,972,922 |
| | | | | | 6,342,413 |
| Insurance: 1.67% | | | | | |
| Marsh & McLennan Companies Incorporated | | | | 17,351 | 2,693,743 |
| Health care: 11.03% | | | | | |
| Health care equipment & supplies: 4.58% | | | | | |
| Align Technology Incorporated † | | | | 3,055 | 723,027 |
| Boston Scientific Corporation † | | | | 70,254 | 2,618,367 |
| LivaNova plc † | | | | 36,575 | 2,284,840 |
| Medtronic plc | | | | 19,668 | 1,765,203 |
| | | | | | 7,391,437 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Opportunity Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Health care providers & services: 1.87% | | | | | |
| UnitedHealth Group Incorporated | | | | 5,870 | $ 3,015,008 |
| Health care technology: 0.46% | | | | | |
| Schrodinger Incorporated † | | | | 27,957 | 738,344 |
| Life sciences tools & services: 4.12% | | | | | |
| Agilent Technologies Incorporated | | | | 16,400 | 1,947,828 |
| Bio-Rad Laboratories Incorporated Class A † | | | | 3,800 | 1,881,000 |
| Thermo Fisher Scientific Incorporated | | | | 5,198 | 2,823,969 |
| | | | | | 6,652,797 |
| Industrials: 16.79% | | | | | |
| Aerospace & defense: 1.30% | | | | | |
| MTU Aero Engines AG | | | | 11,545 | 2,101,524 |
| Building products: 2.73% | | | | | |
| Carlisle Companies Incorporated | | | | 12,759 | 3,044,425 |
| The AZEK Company Incorporated † | | | | 80,843 | 1,353,312 |
| | | | | | 4,397,737 |
| Commercial services & supplies: 1.89% | | | | | |
| Republic Services Incorporated | | | | 23,342 | 3,054,768 |
| Electrical equipment: 1.35% | | | | | |
| Regal Rexnord Corporation | | | | 19,108 | 2,169,140 |
| Machinery: 4.34% | | | | | |
| Fortive Corporation | | | | 49,778 | 2,706,928 |
| Ingersoll Rand Incorporated | | | | 61,653 | 2,594,358 |
| SPX Corporation † | | | | 32,142 | 1,698,383 |
| | | | | | 6,999,669 |
| Professional services: 2.58% | | | | | |
| CoStar Group Incorporated † | | | | 33,490 | 2,023,131 |
| Dun & Bradstreet Holdings Incorporated † | | | | 141,960 | 2,133,659 |
| | | | | | 4,156,790 |
| Trading companies & distributors: 2.60% | | | | | |
| Air Lease Corporation | | | | 63,121 | 2,110,135 |
| United Rentals Incorporated † | | | | 8,596 | 2,088,054 |
| | | | | | 4,198,189 |
| Information technology: 28.81% | | | | | |
| Electronic equipment, instruments & components: 4.16% | | | | | |
| Amphenol Corporation Class A | | | | 49,525 | 3,188,420 |
| Teledyne Technologies Incorporated † | | | | 9,394 | 3,523,783 |
| | | | | | 6,712,203 |
| IT services: 5.55% | | | | | |
| Fidelity National Information Services Incorporated | | | | 31,938 | 2,927,756 |
| Genpact Limited | | | | 46,425 | 1,966,563 |
| MasterCard Incorporated Class A | | | | 12,860 | 4,057,073 |
| | | | | | 8,951,392 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT Opportunity Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Semiconductors & semiconductor equipment: 3.73% | | | | | |
| Marvell Technology Incorporated | | | | 39,742 | $ 1,729,969 |
| Texas Instruments Incorporated | | | | 27,927 | 4,290,984 |
| | | | | | 6,020,953 |
| Software: 10.72% | | | | | |
| Black Knight Incorporated † | | | | 25,196 | 1,647,566 |
| Fair Isaac Corporation † | | | | 6,100 | 2,445,490 |
| Palo Alto Networks Incorporated † | | | | 4,227 | 2,087,884 |
| Riskified Limited Class A †« | | | | 64,252 | 285,279 |
| Salesforce.com Incorporated † | | | | 26,565 | 4,384,288 |
| ServiceNow Incorporated † | | | | 5,063 | 2,407,558 |
| Splunk Incorporated † | | | | 22,292 | 1,971,950 |
| Workday Incorporated Class A † | | | | 14,710 | 2,053,222 |
| | | | | | 17,283,237 |
| Technology hardware, storage & peripherals: 4.65% | | | | | |
| Apple Incorporated | | | | 54,880 | 7,503,194 |
| Materials: 4.79% | | | | | |
| Chemicals: 4.03% | | | | | |
| Ashland Global Holdings Incorporated | | | | 22,614 | 2,330,373 |
| Olin Corporation | | | | 37,063 | 1,715,276 |
| The Sherwin-Williams Company | | | | 10,937 | 2,448,904 |
| | | | | | 6,494,553 |
| Metals & mining: 0.76% | | | | | |
| Steel Dynamics Incorporated | | | | 18,631 | 1,232,441 |
| Real estate: 8.73% | | | | | |
| Equity REITs: 8.73% | | | | | |
| American Tower Corporation | | | | 10,972 | 2,804,333 |
| Duke Realty Corporation | | | | 43,109 | 2,368,840 |
| Equinix Incorporated | | | | 4,659 | 3,061,056 |
| Sun Communities Incorporated | | | | 18,474 | 2,944,017 |
| VICI Properties Incorporated | | | | 97,656 | 2,909,172 |
| | | | | | 14,087,418 |
| Total Common stocks (Cost $130,631,601) | | | | | 158,634,515 |
| | | Yield | | | |
| Short-term investments: 1.93% | | | | | |
| Investment companies: 1.93% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | 2,800,865 | 2,800,865 |
| Securities Lending Cash Investments LLC ♠∩∞ | | 1.56 | | 318,500 | 318,500 |
| Total Short-term investments (Cost $3,119,365) | | | | | 3,119,365 |
| Total investments in securities (Cost $133,750,966) | 100.28% | | | | 161,753,880 |
| Other assets and liabilities, net | (0.28) | | | | (451,589) |
| Total net assets | 100.00% | | | | $161,302,291 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Opportunity Fund | 11
Portfolio of investments—June 30, 2022 (unaudited)
| † | Non-income-earning security |
| « | All or a portion of this security is on loan. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| REIT | Real estate investment trust |
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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $1,561,097 | $16,441,318 | $(15,201,550) | $0 | | $0 | | $ 2,800,865 | 2,800,865 | $ 2,571 |
| Securities Lending Cash Investments LLC | 4,058,435 | 3,704,335 | (7,444,270) | 0 | | 0 | | 318,500 | 318,500 | 1,099 # |
| | | | | $0 | | $0 | | $3,119,365 | | $3,670 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT Opportunity Fund
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities (including $298,116 of securities loaned), at value (cost $130,631,601)
| $ 158,634,515 |
Investments in affiliated securities, at value (cost $3,119,365)
| 3,119,365 |
Receivable for investments sold
| 4,837,380 |
Receivable for dividends
| 197,057 |
Receivable for Fund shares sold
| 7,258 |
Receivable for securities lending income, net
| 76 |
Prepaid expenses and other assets
| 1,353 |
Total assets
| 166,797,004 |
| Liabilities | |
Payable for investments purchased
| 4,965,622 |
Payable upon receipt of securities loaned
| 318,500 |
Management fee payable
| 77,167 |
Payable for Fund shares redeemed
| 42,697 |
Distribution fee payable
| 28,782 |
Administration fees payable
| 10,964 |
Trustees’ fees and expenses payable
| 8,934 |
Accrued expenses and other liabilities
| 42,047 |
Total liabilities
| 5,494,713 |
Total net assets
| $161,302,291 |
| Net assets consist of | |
Paid-in capital
| $ 87,107,455 |
Total distributable earnings
| 74,194,836 |
Total net assets
| $161,302,291 |
| Computation of net asset value per share | |
Net assets – Class 1
| $ 25,523,288 |
Shares outstanding – Class 11
| 947,735 |
Net asset value per share – Class 1
| $26.93 |
Net assets – Class 2
| $ 135,779,003 |
Shares outstanding – Class 21
| 5,022,528 |
Net asset value per share – Class 2
| $27.03 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Opportunity Fund | 13
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends (net of foreign withholdings taxes of $3,978)
| $ 774,561 |
Income from affiliated securities
| 4,643 |
Total investment income
| 779,204 |
| Expenses | |
Management fee
| 642,602 |
| Administration fees | |
Class 1
| 11,501 |
Class 2
| 61,939 |
| Distribution fee | |
Class 2
| 191,848 |
Custody and accounting fees
| 8,592 |
Professional fees
| 25,369 |
Shareholder report expenses
| 23,891 |
Trustees’ fees and expenses
| 15,819 |
Other fees and expenses
| 7,924 |
Total expenses
| 989,485 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (107,861) |
Net expenses
| 881,624 |
Net investment loss
| (102,420) |
| Realized and unrealized gains (losses) on investments | |
Net realized gains on investments
| 12,913,154 |
Net change in unrealized gains (losses) on investments
| (62,478,319) |
Net realized and unrealized gains (losses) on investments
| (49,565,165) |
Net decrease in net assets resulting from operations
| $(49,667,585) |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT Opportunity Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment loss
| | $ (102,420) | | $ (488,072) |
Net realized gains on investments
| | 12,913,154 | | 34,674,337 |
Net change in unrealized gains (losses) on investments
| | (62,478,319) | | 12,426,757 |
Net increase (decrease) in net assets resulting from operations
| | (49,667,585) | | 46,613,022 |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class 1
| | 0 | | (1,721,579) |
Class 2
| | 0 | | (8,980,638) |
Total distributions to shareholders
| | 0 | | (10,702,217) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class 1
| 7,364 | 228,100 | 14,838 | 488,248 |
Class 2
| 34,353 | 1,044,577 | 92,298 | 3,047,866 |
| | | 1,272,677 | | 3,536,114 |
| Reinvestment of distributions | | | | |
Class 1
| 0 | 0 | 53,415 | 1,721,579 |
Class 2
| 0 | 0 | 276,924 | 8,980,638 |
| | | 0 | | 10,702,217 |
| Payment for shares redeemed | | | | |
Class 1
| (42,932) | (1,338,823) | (172,775) | (5,602,343) |
Class 2
| (326,572) | (10,084,878) | (701,988) | (22,829,650) |
| | | (11,423,701) | | (28,431,993) |
Net decrease in net assets resulting from capital share transactions
| | (10,151,024) | | (14,193,662) |
Total increase (decrease) in net assets
| | (59,818,609) | | 21,717,143 |
| Net assets | | | | |
Beginning of period
| | 221,120,900 | | 199,403,757 |
End of period
| | $161,302,291 | | $221,120,900 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Opportunity Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 1 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $34.96 | $29.48 | $26.56 | $22.76 | $27.05 | $24.60 |
Net investment income (loss)
| 0.01 | (0.01) | 0.09 | 0.17 | 0.15 | 0.13 |
Net realized and unrealized gains (losses) on investments
| (8.04) | 7.25 | 5.03 | 6.84 | (1.69) | 4.77 |
Total from investment operations
| (8.03) | 7.24 | 5.12 | 7.01 | (1.54) | 4.90 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.08) | (0.19) | (0.15) | (0.12) | (0.25) |
Net realized gains
| 0.00 | (1.68) | (2.01) | (3.06) | (2.63) | (2.20) |
Total distributions to shareholders
| 0.00 | (1.76) | (2.20) | (3.21) | (2.75) | (2.45) |
Net asset value, end of period
| $26.93 | $34.96 | $29.48 | $26.56 | $22.76 | $27.05 |
Total return1
| (22.97)% | 25.06% | 21.32% | 31.81% | (6.93)% | 20.72% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.87% | 0.84% | 0.86% | 0.85% | 0.84% | 0.86% |
Net expenses
| 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income (loss)
| 0.10% | (0.02)% | 0.31% | 0.67% | 0.52% | 0.43% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 12% | 27% | 42% | 25% | 31% | 36% |
Net assets, end of period (000s omitted)
| $25,523 | $34,376 | $32,066 | $30,811 | $27,165 | $33,843 |
| 1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT Opportunity Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $35.14 | $29.63 | $26.68 | $22.85 | $27.14 | $24.67 |
Net investment income (loss)
| (0.02) | (0.09) | 0.03 | 0.11 | 0.08 | 0.06 |
Net realized and unrealized gains (losses) on investments
| (8.09) | 7.29 | 5.05 | 6.86 | (1.69) | 4.79 |
Total from investment operations
| (8.11) | 7.20 | 5.08 | 6.97 | (1.61) | 4.85 |
| Distributions to shareholders from | | | | | | |
Net investment income
| 0.00 | (0.01) | (0.12) | (0.08) | (0.05) | (0.18) |
Net realized gains
| 0.00 | (1.68) | (2.01) | (3.06) | (2.63) | (2.20) |
Total distributions to shareholders
| 0.00 | (1.69) | (2.13) | (3.14) | (2.68) | (2.38) |
Net asset value, end of period
| $27.03 | $35.14 | $29.63 | $26.68 | $22.85 | $27.14 |
Total return1
| (23.05)% | 24.78% | 21.00% | 31.46% | (7.15)% | 20.44% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.12% | 1.10% | 1.11% | 1.10% | 1.09% | 1.11% |
Net expenses
| 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss)
| (0.15)% | (0.27)% | 0.06% | 0.42% | 0.27% | 0.18% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 12% | 27% | 42% | 25% | 31% | 36% |
Net assets, end of period (000s omitted)
| $135,779 | $186,745 | $167,338 | $158,216 | $134,972 | $165,992 |
| 1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Opportunity Fund | 17
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT Opportunity Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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 Allspring Global Investments Pricing 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 approved by the Board of Trustees of the Fund 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 June 30, 2022, such fair value pricing was not used in pricing foreign securities.
Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
18 | Allspring VT Opportunity Fund
Notes to financial statements (unaudited)
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 Allspring Global Investments Pricing 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.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund (net of fees and rebates), if any, is included in income from affiliated securities on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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.
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. generally accepted accounting principles. 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.
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.
Allspring VT Opportunity Fund | 19
Notes to financial statements (unaudited)
As of June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $133,689,505 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 41,273,724 |
| Gross unrealized losses | (13,209,349) |
| Net unrealized gains | $ 28,064,375 |
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution 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 June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 13,931,870 | $0 | $0 | $ 13,931,870 |
| Consumer discretionary | 18,217,855 | 0 | 0 | 18,217,855 |
| Consumer staples | 4,287,840 | 0 | 0 | 4,287,840 |
| Financials | 9,036,156 | 0 | 0 | 9,036,156 |
| Health care | 17,797,586 | 0 | 0 | 17,797,586 |
| Industrials | 27,077,817 | 0 | 0 | 27,077,817 |
| Information technology | 46,470,979 | 0 | 0 | 46,470,979 |
| Materials | 7,726,994 | 0 | 0 | 7,726,994 |
| Real estate | 14,087,418 | 0 | 0 | 14,087,418 |
| Short-term investments | | | | |
| Investment companies | 3,119,365 | 0 | 0 | 3,119,365 |
| Total assets | $161,753,880 | $0 | $0 | $161,753,880 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
20 | Allspring VT Opportunity Fund
Notes to financial statements (unaudited)
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.700% |
| Next $500 million | 0.675 |
| Next $1 billion | 0.650 |
| Next $2 billion | 0.625 |
| Next $1 billion | 0.600 |
| Next $5 billion | 0.590 |
| Over $10 billion | 0.580 |
For the six months ended June 30, 2022, the management fee was equivalent to an annual rate of 0.70% 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 ("Allspring Investments"), 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.
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 services and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee of 0.08% which is calculated based on the average daily net assets of each class.
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 April 30, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. As of June 30, 2022, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class 1 | 0.75% |
| Class 2 | 1.00 |
Allspring VT Opportunity Fund | 21
Notes to financial statements (unaudited)
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
Interfund transactions
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.
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 June 30, 2022 were $26,995,744 and $42,107,282, respectively.
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund had securities lending transactions with the following counterparties which are subject to offset:
| Counterparty | Value of
securities on
loan | Collateral
received1 | Net amount |
| JPMorgan Securities LLC | $298,116 | $(298,116) | $0 |
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $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 in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISKS
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.
9. INDEMNIFICATION
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
22 | Allspring VT Opportunity Fund
Notes to financial statements (unaudited)
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.
10. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
Allspring VT Opportunity Fund | 23
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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.
24 | Allspring VT Opportunity Fund
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
Allspring VT Opportunity Fund | 25
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
26 | Allspring VT Opportunity Fund
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
Allspring VT Opportunity Fund | 27
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
28 | Allspring VT Opportunity 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: 1-800-260-5969
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00684 08-22
SVT6/SAR143 06-22
Semi-Annual Report
June 30, 2022
Allspring
VT Small Cap Growth Fund
The views expressed and any forward-looking statements are as of June 30, 2022, unless otherwise noted, and are those of the Fund's portfolio managers and/or Allspring Global Investments. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring VT Small Cap Growth Fund | 1
Letter to shareholders (unaudited)
Andrew Owen
President
Allspring Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for Allspring VT Small Cap Growth Fund for the six-month period that ended June 30, 2022. Globally, stocks experienced heightened volatility through the period as the global economy faced multiple challenges. Bonds also had poor performance during a difficult period, with major fixed income indexes all down for the six-month period.
Earlier tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were more than offset by the highest rate of inflation in four decades, concerns about aggressive central bank rate hikes, more highly contagious COVID-19 variants, and the Russia-Ukraine war. The impact of already-significant supply chain disruptions was made worse by China’s COVID-19 lockdowns.
For the six-month period, U.S. large-cap stocks, non-U.S. developed market equities, and emerging market stocks had substantial losses. Returns by fixed income securities were negative as rising inflation posed ongoing challenges. For the period, U.S. stocks, based on the S&P 500 Index,1 returned -19.96%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -18.42%, while the MSCI EM Index (Net) (USD),3 lost 17.63%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -10.35%, the Bloomberg Global Aggregate ex-USD Index (unhedged),5 lost 16.49%, the Bloomberg Municipal Bond Index,6 lost 8.98%, and the ICE BofA U.S. High Yield Index,7 fell 14.04%.
Rising inflation, COVID, and the Russian invasion of Ukraine drove market performance.
The 2022 calendar year began with a focus on potential U.S. interest rate hikes and the Russia-Ukraine conflict. In response to rising inflation, the U.S. Federal Reserve (Fed) hinted that a March rate hike was likely. Meanwhile, Russia threatened a potential invasion of Ukraine, which could disrupt Russia’s massive energy supplies and drive demand from non-Russian oil-producing countries. Meanwhile, Europe saw food and energy prices spike, leading to rising inflation. Within fixed income, corporate bonds struggled in January, underperforming government bonds, as investors focused on continued elevated inflation and ongoing uncertainty over the U.S. monetary path.
| 1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. |
| 2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the U.S. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
| 3 | The MSCI Emerging Markets (EM) Index (Net) (USD) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
| 4 | The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S.-dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
| 5 | The Bloomberg Global Aggregate ex-USD Index (unhedged) is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
| 6 | The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index. |
| 7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2022. ICE Data Indices, LLC. All rights reserved. |
2 | Allspring VT Small Cap Growth Fund
Letter to shareholders (unaudited)
The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics. Major global stock indexes were down in February, along with global bonds overall, with ongoing high levels of volatility in March along with mixed results that favored U.S. large-cap stocks. Prices of commodities spiked, including crude oil, natural gas, wheat, and precious metals, on elevated concerns of supply shortages. All of this fed already-high inflation concerns and added to expectations of more aggressive central bank interest rate hikes. Sweeping sanctions against Russia and corporate pullouts contributed to market volatility. Despite the geopolitical turmoil, the U.S. economic outlook remained largely unchanged, with a healthy job market and indications of growth.
In April, market volatility continued, with deepening losses across major capital markets, as both the S&P 500 and MSCI ACWI (Net)1 fell 8% or more for the month. The Chinese economy struggled through a strict lockdown as the government tried to contain a major COVID-19 outbreak, creating a global ripple effect that compounded existing supply shortages. This was exacerbated by the impact of the Russia-Ukraine war on global commodities. Meanwhile, U.S. annual inflation raged at 8.5%, its highest level since 1981, and investors braced themselves for aggressive Fed monetary tightening moves.
Market volatility continued in May, although markets recovered ground late in the month. Value stocks continued to outperform growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that exacerbated high crude oil, gasoline, and food prices. In response, the Fed raised the federal funds rate by 0.50%, with broad expectations of multiple rate hikes to come. Meanwhile, highly contagious COVID-19 variants persisted. However, labor markets in the U.S., the U.K., and Europe remained strong. The U.S. recorded a 3.6% unemployment rate, although labor market participation remained low. U.S. retail sales increased for the fourth consecutive month in April, indicating continued consumer resilience.
A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years. Bonds didn’t fare much better. Driving the losses were the same factors that have been at play: rising global inflation and fears of recession as central banks increase rates to try to curb inflation, which climbed above 9% in June in the U.S. The Fed raised its short-term rate by another 0.75% in June, ending the month at a 1.50%–1.75% range. Meanwhile, U.S. economic data remained relatively robust as the U.S. unemployment rate held steady at 3.6% and the housing market was only marginally affected, so far, by sharply higher mortgage rates.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Allspring Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Allspring Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Allspring Funds
“ The Russian invasion of Ukraine dominated the financial world in February and March. Equity, bond, and commodity markets were shaken by fear, uncertainty, and an upending of demand-supply dynamics.”
“ A historically bad year in financial markets continued in June with stocks posting further losses enroute to their worst first half of a year in 50 years.”
For further information about your fund, contact your investment professional, visit our website at allspringglobal.com, or call us directly at 1-800-222-8222.
| 1 | The MSCI ACWI (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. You cannot invest directly in an index. |
Allspring VT Small Cap Growth Fund | 3
Letter to shareholders (unaudited)
Notice to Shareholders
Russia launched a large-scale invasion of Ukraine on February 24, 2022. As a result of this military action, the United States and many other countries have instituted various economic sanctions against Russian and Belarus individuals and entities. The situation has led to increased financial market volatility and has had severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. The extent and duration of the military action, resulting sanctions imposed, other punitive action taken and the resulting market disruptions cannot be easily predicted.
Our solidarity and support goes out to our impacted employees and the people affected in Ukraine and their families. Allspring has a dedicated team of investment professionals actively monitoring the situation for any new developments and the potential impact to our clients and investment products. As the situation remains fluid, we are focused on the assessment of risks, valuation, and liquidity of impacted securities. Please visit our website at allspringglobal.com and click on “Russia-Ukraine Updates” for further information.
4 | Allspring VT Small Cap Growth Fund
This page is intentionally left blank.
Performance highlights (unaudited)
| Investment objective | The Fund seeks long-term capital appreciation. |
| Manager | Allspring Funds Management, LLC |
| Subadviser | Allspring Global Investments, LLC |
| Portfolio managers | Robert Gruendyke, CFA®‡, David Nazaret, CFA®‡, Thomas C. Ognar, CFA®‡ |
| Average annual total returns (%) as of June 30, 2022 |
| | | | | | Expense ratios1 (%) |
| | Inception date | 1 year | 5 year | 10 year | Gross | Net 2 |
| Class 1 | 7-16-2010 | -36.82 | 8.74 | 10.56 | 0.92 | 0.92 |
| Class 2 | 5-1-1995 | -37.01 | 8.45 | 10.29 | 1.17 | 1.17 |
| Russell 2000® Growth Index3 | – | -33.43 | 4.80 | 9.30 | – | – |
Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available by calling 1-800-260-5969. Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. If these fees and expenses had been reflected, performance would have been lower.
Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses, or any taxes. It is not possible to invest directly in an index.
Shares are sold without a front-end sales charge or contingent deferred sales charge.
| 1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
| 2 | The manager has contractually committed through April 30, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.95% for Class 1 shares and 1.20% for Class 2 shares. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectuses. |
| 3 | The Russell 2000® Growth Index measures the performance of those Russell 2000 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. Consult the Fund’s prospectus for additional information on these and other risks.
Please refer to the prospectus provided by your participating insurance company for detailed information describing the separate accounts for information regarding surrender charges, mortality and expense risk fees, and other charges that may be assessed by the participating insurance companies.
| ‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring VT Small Cap Growth Fund
Performance highlights (unaudited)
| Ten largest holdings (%) as of June 30, 20221 |
| Kinsale Capital Group Incorporated | 4.03 |
| SPS Commerce Incorporated | 3.61 |
| ASGN Incorporated | 3.16 |
| Shockwave Medical Incorporated | 3.02 |
| Rapid7 Incorporated | 2.89 |
| Casella Waste Systems Incorporated Class A | 2.66 |
| Zurn Water Solutions Corporation | 2.65 |
| Novanta Incorporated | 2.65 |
| The Chef's Warehouse Incorporated | 2.27 |
| Papa John's International Incorporated | 2.25 |
| 1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
| Sector allocation as of June 30, 20221 |
| 1 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
Allspring VT Small Cap Growth Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from January 1, 2022 to June 30, 2022.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any separate account charges assessed by participating insurance companies. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these separate account charges assessed by participating insurance companies were included, your costs would have been higher.
| | Beginning
account value
1-1-2022 | Ending
account value
6-30-2022 | Expenses
paid during
the period1 | Annualized net
expense ratio |
| Class 1 | | | | |
| Actual | $1,000.00 | $ 639.57 | $3.82 | 0.94% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.71 | 0.94% |
| Class 2 | | | | |
| Actual | $1,000.00 | $ 638.89 | $4.84 | 1.19% |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,018.89 | $5.96 | 1.19% |
1 Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by 181 divided by 365 (to reflect the one-half-year period).
8 | Allspring VT Small Cap Growth Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Common stocks: 98.65% | | | | | |
| Communication services: 1.28% | | | | | |
| Interactive media & services: 0.73% | | | | | |
| Eventbrite Incorporated Class A † | | | | 201,700 | $ 2,071,459 |
| Media: 0.55% | | | | | |
| TechTarget Incorporated † | | | | 23,700 | 1,557,564 |
| Consumer discretionary: 11.79% | | | | | |
| Auto components: 1.52% | | | | | |
| Fox Factory Holding Corporation † | | | | 53,610 | 4,317,749 |
| Hotels, restaurants & leisure: 4.73% | | | | | |
| Hilton Grand Vacations Incorporated † | | | | 134,200 | 4,794,966 |
| Papa John's International Incorporated | | | | 76,520 | 6,390,950 |
| Wingstop Incorporated | | | | 29,769 | 2,225,828 |
| | | | | | 13,411,744 |
| Leisure products: 1.04% | | | | | |
| YETI Holdings Incorporated † | | | | 68,296 | 2,955,168 |
| Multiline retail: 0.36% | | | | | |
| Ollie's Bargain Outlet Holdings Incorporated † | | | | 17,100 | 1,004,625 |
| Specialty retail: 2.96% | | | | | |
| Boot Barn Holdings Incorporated † | | | | 23,640 | 1,629,032 |
| Leslie's Incorporated †« | | | | 156,892 | 2,381,621 |
| Lithia Motors Incorporated Class A | | | | 15,920 | 4,374,975 |
| | | | | | 8,385,628 |
| Textiles, apparel & luxury goods: 1.18% | | | | | |
| Crocs Incorporated † | | | | 23,380 | 1,137,905 |
| Deckers Outdoor Corporation † | | | | 8,680 | 2,216,438 |
| | | | | | 3,354,343 |
| Consumer staples: 5.54% | | | | | |
| Beverages: 1.50% | | | | | |
| Celsius Holdings Incorporated † | | | | 28,000 | 1,827,280 |
| Duckhorn Portfolio Incorporated † | | | | 115,800 | 2,438,748 |
| | | | | | 4,266,028 |
| Food & staples retailing: 2.27% | | | | | |
| The Chef's Warehouse Incorporated † | | | | 165,370 | 6,431,239 |
| Food products: 1.77% | | | | | |
| Freshpet Incorporated † | | | | 69,107 | 3,585,962 |
| The Simply Good Foods Company † | | | | 37,700 | 1,423,929 |
| | | | | | 5,009,891 |
| Financials: 6.06% | | | | | |
| Capital markets: 2.03% | | | | | |
| Stifel Financial Corporation | | | | 103,035 | 5,772,021 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Small Cap Growth Fund | 9
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Insurance: 4.03% | | | | | |
| Kinsale Capital Group Incorporated | | | | 49,776 | $ 11,430,561 |
| Health care: 25.93% | | | | | |
| Biotechnology: 7.96% | | | | | |
| Arcutis Biotherapeutics Incorporated † | | | | 145,946 | 3,110,109 |
| Biohaven Pharmaceutical Holding Company † | | | | 33,480 | 4,878,371 |
| Cytokinetics Incorporated † | | | | 40,300 | 1,583,387 |
| Fate Therapeutics Incorporated † | | | | 45,060 | 1,116,587 |
| Halozyme Therapeutics Incorporated † | | | | 142,540 | 6,271,760 |
| Vericel Corporation † | | | | 223,190 | 5,619,924 |
| | | | | | 22,580,138 |
| Health care equipment & supplies: 11.36% | | | | | |
| Axonics Incorporated † | | | | 95,200 | 5,394,984 |
| Figs Incorporated Class A † | | | | 165,630 | 1,508,889 |
| Inari Medical Incorporated † | | | | 6,700 | 455,533 |
| iRhythm Technologies Incorporated † | | | | 41,000 | 4,429,230 |
| Nyxoah SA † | | | | 30,853 | 293,104 |
| Omnicell Incorporated † | | | | 9,600 | 1,092,000 |
| Orthopediatrics Corporation † | | | | 83,801 | 3,616,013 |
| Outset Medical Incorporated † | | | | 64,368 | 956,508 |
| Pulmonx Corporation † | | | | 50,923 | 749,587 |
| Shockwave Medical Incorporated † | | | | 44,846 | 8,573,210 |
| SI-BONE Incorporated † | | | | 179,598 | 2,370,694 |
| Silk Road Medical Incorporated † | | | | 32,310 | 1,175,761 |
| Tandem Diabetes Care Incorporated † | | | | 27,180 | 1,608,784 |
| | | | | | 32,224,297 |
| Health care providers & services: 1.47% | | | | | |
| Castle Biosciences Incorporated † | | | | 109,518 | 2,403,920 |
| Privia Health Group Incorporated † | | | | 60,894 | 1,773,233 |
| | | | | | 4,177,153 |
| Health care technology: 2.02% | | | | | |
| Inspire Medical Systems Incorporated † | | | | 31,340 | 5,724,878 |
| Life sciences tools & services: 1.51% | | | | | |
| Akoya Biosciences Incorporated †« | | | | 55,063 | 707,560 |
| Alpha Teknova Incorporated † | | | | 21,562 | 181,121 |
| Codexis Incorporated † | | | | 323,767 | 3,386,603 |
| | | | | | 4,275,284 |
| Pharmaceuticals: 1.61% | | | | | |
| Amylyx Pharmaceuticals Incorporated †« | | | | 97,081 | 1,869,780 |
| Pacira Biosciences Incorporated † | | | | 46,400 | 2,705,120 |
| | | | | | 4,574,900 |
| Industrials: 14.02% | | | | | |
| Building products: 2.65% | | | | | |
| Zurn Water Solutions Corporation | | | | 276,350 | 7,527,774 |
| Commercial services & supplies: 2.66% | | | | | |
| Casella Waste Systems Incorporated Class A † | | | | 103,690 | 7,536,189 |
The accompanying notes are an integral part of these financial statements.
10 | Allspring VT Small Cap Growth Fund
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Construction & engineering: 0.32% | | | | | |
| Construction Partners Incorporated Class A † | | | | 42,800 | $ 896,232 |
| Electrical equipment: 1.94% | | | | | |
| Regal Rexnord Corporation | | | | 48,574 | 5,514,120 |
| Machinery: 1.09% | | | | | |
| Evoqua Water Technologies Company † | | | | 95,500 | 3,104,705 |
| Professional services: 3.16% | | | | | |
| ASGN Incorporated † | | | | 99,441 | 8,974,550 |
| Road & rail: 0.57% | | | | | |
| Saia Incorporated † | | | | 8,592 | 1,615,296 |
| Trading companies & distributors: 1.63% | | | | | |
| Applied Industrial Technologies Incorporated | | | | 7,100 | 682,807 |
| SiteOne Landscape Supply Incorporated † | | | | 33,070 | 3,931,031 |
| | | | | | 4,613,838 |
| Information technology: 34.03% | | | | | |
| Communications equipment: 1.33% | | | | | |
| Calix Incorporated † | | | | 110,400 | 3,769,056 |
| Electronic equipment, instruments & components: 2.65% | | | | | |
| Novanta Incorporated † | | | | 61,908 | 7,507,583 |
| IT services: 6.53% | | | | | |
| BigCommerce Holdings Incorporated Series 1 † | | | | 178,100 | 2,885,220 |
| DigitalOcean Holdings Incorporated †« | | | | 42,300 | 1,749,528 |
| Endava plc ADR † | | | | 42,434 | 3,745,649 |
| EVO Payments Incorporated Class A † | | | | 130,201 | 3,062,328 |
| Flywire Corporation † | | | | 60,400 | 1,064,852 |
| Paymentus Holdings Incorporated A †« | | | | 102,721 | 1,373,380 |
| Perficient Incorporated † | | | | 30,400 | 2,787,376 |
| Shift4 Payments Incorporated Class A † | | | | 56,000 | 1,851,360 |
| | | | | | 18,519,693 |
| Semiconductors & semiconductor equipment: 6.32% | | | | | |
| Allegro MicroSystems Incorporated † | | | | 177,616 | 3,674,875 |
| Diodes Incorporated † | | | | 74,090 | 4,783,991 |
| Semtech Corporation † | | | | 93,650 | 5,147,941 |
| Silicon Laboratories Incorporated † | | | | 20,170 | 2,828,237 |
| Sitime Corporation † | | | | 9,200 | 1,499,876 |
| | | | | | 17,934,920 |
| Software: 17.20% | | | | | |
| CyberArk Software Limited † | | | | 41,200 | 5,271,952 |
| Domo Incorporated Class B † | | | | 70,100 | 1,948,780 |
| Jamf Holding Corporation † | | | | 142,558 | 3,531,162 |
| Olo Incorporated Class A † | | | | 147,976 | 1,460,523 |
| Paycor HCM Incorporated †« | | | | 163,661 | 4,255,186 |
| Q2 Holdings Incorporated † | | | | 68,196 | 2,630,320 |
| Rapid7 Incorporated † | | | | 122,918 | 8,210,922 |
| RingCentral Incorporated Class A † | | | | 23,400 | 1,222,884 |
| Sprout Social Incorporated Class A † | | | | 72,339 | 4,200,726 |
| SPS Commerce Incorporated † | | | | 90,574 | 10,239,391 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Small Cap Growth Fund | 11
Portfolio of investments—June 30, 2022 (unaudited)
| | | | | Shares | Value |
| Software (continued) | | | | | |
| Verint Systems Incorporated † | | | | 36,400 | $ 1,541,540 |
| Workiva Incorporated † | | | | 64,700 | 4,269,553 |
| | | | | | 48,782,939 |
| Total Common stocks (Cost $274,569,375) | | | | | 279,821,565 |
| | | Yield | | | |
| Short-term investments: 5.16% | | | | | |
| Investment companies: 5.16% | | | | | |
| Allspring Government Money Market Fund Select Class ♠∞ | | 1.26% | | 4,687,167 | 4,687,167 |
| Securities Lending Cash Investments LLC ♠∩∞ | | 1.56 | | 9,937,500 | 9,937,500 |
| Total Short-term investments (Cost $14,624,667) | | | | | 14,624,667 |
| Total investments in securities (Cost $289,194,042) | 103.81% | | | | 294,446,232 |
| Other assets and liabilities, net | (3.81) | | | | (10,802,325) |
| Total net assets | 100.00% | | | | $283,643,907 |
| † | Non-income-earning security |
| « | All or a portion of this security is on loan. |
| ♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| ∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
| ∞ | The rate represents the 7-day annualized yield at period end. |
| Abbreviations: |
| ADR | 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:
| | Value,
beginning of
period | Purchases | Sales
proceeds | Net
realized
gains
(losses) | | Net
change in
unrealized
gains
(losses) | | Value,
end of
period | Shares,
end
of period | Income
from
affiliated
securities |
| Short-term investments | | | | | | | | | |
| Allspring Government Money Market Fund Select Class | $ 6,232,112 | $50,491,919 | $(52,036,864) | $0 | | $0 | | $ 4,687,167 | 4,687,167 | $ 10,052 |
| Securities Lending Cash Investments LLC | 11,274,475 | 50,601,756 | (51,938,731) | 0 | | 0 | | 9,937,500 | 9,937,500 | 22,850 # |
| | | | | $0 | | $0 | | $14,624,667 | | $32,902 |
| # | Amount shown represents income before fees and rebates. |
The accompanying notes are an integral part of these financial statements.
12 | Allspring VT Small Cap Growth Fund
Statement of assets and liabilities—June 30, 2022 (unaudited)
| | |
| Assets | |
Investments in unaffiliated securities (including $9,677,056 of securities loaned), at value (cost $274,569,375)
| $ 279,821,565 |
Investments in affiliated securities, at value (cost $14,624,667)
| 14,624,667 |
Receivable for investments sold
| 533,354 |
Receivable for Fund shares sold
| 194,619 |
Receivable for dividends
| 19,967 |
Receivable for securities lending income, net
| 17,786 |
Prepaid expenses and other assets
| 3,719 |
Total assets
| 295,215,677 |
| Liabilities | |
Payable upon receipt of securities loaned
| 9,937,500 |
Payable for investments purchased
| 878,457 |
Payable for Fund shares redeemed
| 429,356 |
Management fee payable
| 189,678 |
Distribution fee payable
| 54,382 |
Administration fees payable
| 18,968 |
Trustees’ fees and expenses payable
| 1,043 |
Accrued expenses and other liabilities
| 62,386 |
Total liabilities
| 11,571,770 |
Total net assets
| $283,643,907 |
| Net assets consist of | |
Paid-in capital
| $ 232,782,436 |
Total distributable earnings
| 50,861,471 |
Total net assets
| $283,643,907 |
| Computation of net asset value per share | |
Net assets – Class 1
| $ 22,082,578 |
Shares outstanding – Class 11
| 2,340,251 |
Net asset value per share – Class 1
| $9.44 |
Net assets – Class 2
| $ 261,561,329 |
Shares outstanding – Class 21
| 29,175,151 |
Net asset value per share – Class 2
| $8.97 |
| 1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Small Cap Growth Fund | 13
Statement of operations—six months ended June 30, 2022 (unaudited)
| | |
| Investment income | |
Dividends
| $ 340,895 |
Securities lending income (including from affiliate), net
| 73,437 |
Income from affiliated securities
| 10,052 |
Total investment income
| 424,384 |
| Expenses | |
Management fee
| 1,353,057 |
| Administration fees | |
Class 1
| 10,561 |
Class 2
| 124,745 |
| Distribution fee | |
Class 2
| 383,730 |
Custody and accounting fees
| 19,529 |
Professional fees
| 28,888 |
Shareholder report expenses
| 42,050 |
Trustees’ fees and expenses
| 10,122 |
Other fees and expenses
| 4,788 |
Total expenses
| 1,977,470 |
| Less: Fee waivers and/or expense reimbursements | |
Fund-level
| (3,166) |
Net expenses
| 1,974,304 |
Net investment loss
| (1,549,920) |
| Realized and unrealized gains (losses) on investments | |
Net realized losses on investments
| (8,387,267) |
Net change in unrealized gains (losses) on investments
| (152,468,406) |
Net realized and unrealized gains (losses) on investments
| (160,855,673) |
Net decrease in net assets resulting from operations
| $(162,405,593) |
The accompanying notes are an integral part of these financial statements.
14 | Allspring VT Small Cap Growth Fund
Statement of changes in net assets
| | | | | |
| | Six months ended
June 30, 2022
(unaudited) | Year ended
December 31, 2021 |
| Operations | | | | |
Net investment loss
| | $ (1,549,920) | | $ (4,602,420) |
Net realized gains (losses) on investments
| | (8,387,267) | | 55,782,072 |
Net change in unrealized gains (losses) on investments
| | (152,468,406) | | (18,991,009) |
Net increase (decrease) in net assets resulting from operations
| | (162,405,593) | | 32,188,643 |
| Distributions to shareholders from | | | | |
| Net investment income and net realized gains | | | | |
Class 1
| | 0 | | (3,835,125) |
Class 2
| | 0 | | (46,253,009) |
Total distributions to shareholders
| | 0 | | (50,088,134) |
| Capital share transactions | Shares | | Shares | |
| Proceeds from shares sold | | | | |
Class 1
| 178,600 | 2,084,011 | 403,806 | 6,327,801 |
Class 2
| 1,904,949 | 22,009,186 | 3,593,609 | 54,641,517 |
| | | 24,093,197 | | 60,969,318 |
| Reinvestment of distributions | | | | |
Class 1
| 0 | 0 | 270,842 | 3,835,125 |
Class 2
| 0 | 0 | 3,428,689 | 46,253,009 |
| | | 0 | | 50,088,134 |
| Payment for shares redeemed | | | | |
Class 1
| (223,750) | (2,597,747) | (577,421) | (9,014,167) |
Class 2
| (2,259,293) | (25,332,650) | (4,137,781) | (61,701,252) |
| | | (27,930,397) | | (70,715,419) |
Net increase (decrease) in net assets resulting from capital share transactions
| | (3,837,200) | | 40,342,033 |
Total increase (decrease) in net assets
| | (166,242,793) | | 22,442,542 |
| Net assets | | | | |
Beginning of period
| | 449,886,700 | | 427,444,158 |
End of period
| | $ 283,643,907 | | $449,886,700 |
The accompanying notes are an integral part of these financial statements.
Allspring VT Small Cap Growth Fund | 15
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 1 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $14.76 | $15.35 | $10.29 | $9.66 | $10.43 | $8.51 |
Net investment loss
| (0.03) | (0.12) 1 | (0.09) | (0.07) 1 | (0.05) | (0.04) |
Net realized and unrealized gains (losses) on investments
| (5.29) | 1.26 | 5.80 | 2.51 | 0.40 | 2.24 |
Total from investment operations
| (5.32) | 1.14 | 5.71 | 2.44 | 0.35 | 2.20 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (1.73) | (0.65) | (1.81) | (1.12) | (0.28) |
Net asset value, end of period
| $9.44 | $14.76 | $15.35 | $10.29 | $9.66 | $10.43 |
Total return2
| (36.04)% | 7.93% | 58.09% | 25.31% | 1.48% | 26.14% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 0.94% | 0.92% | 0.93% | 0.93% | 0.92% | 0.94% |
Net expenses
| 0.94% | 0.92% | 0.93% | 0.93% | 0.92% | 0.94% |
Net investment loss
| (0.69)% | (0.78)% | (0.76)% | (0.69)% | (0.59)% | (0.65)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 46% | 51% | 62% | 68% | 72% |
Net assets, end of period (000s omitted)
| $22,083 | $35,204 | $35,128 | $22,925 | $19,801 | $22,591 |
| 1 | Calculated based upon average shares outstanding |
| 2 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
16 | Allspring VT Small Cap Growth Fund
Financial highlights
(For a share outstanding throughout each period)
| | | Year ended December 31 |
| Class 2 | Six months ended
June 30, 2022
(unaudited) | 2021 | 2020 | 2019 | 2018 | 2017 |
Net asset value, beginning of period
| $14.04 | $14.72 | $9.91 | $9.38 | $10.18 | $8.33 |
Net investment loss
| (0.05) | (0.14) | (0.11) | (0.09) | (0.09) | (0.09) |
Net realized and unrealized gains (losses) on investments
| (5.02) | 1.19 | 5.57 | 2.43 | 0.41 | 2.22 |
Total from investment operations
| (5.07) | 1.05 | 5.46 | 2.34 | 0.32 | 2.13 |
| Distributions to shareholders from | | | | | | |
Net realized gains
| 0.00 | (1.73) | (0.65) | (1.81) | (1.12) | (0.28) |
Net asset value, end of period
| $8.97 | $14.04 | $14.72 | $9.91 | $9.38 | $10.18 |
Total return1
| (36.11)% | 7.64% | 57.78% | 24.83% | 1.20% | 25.86% |
| Ratios to average net assets (annualized) | | | | | | |
Gross expenses
| 1.19% | 1.17% | 1.18% | 1.18% | 1.17% | 1.19% |
Net expenses
| 1.19% | 1.17% | 1.18% | 1.18% | 1.17% | 1.19% |
Net investment loss
| (0.94)% | (1.03)% | (1.00)% | (0.95)% | (0.84)% | (0.90)% |
| Supplemental data | | | | | | |
Portfolio turnover rate
| 21% | 46% | 51% | 62% | 68% | 72% |
Net assets, end of period (000s omitted)
| $261,561 | $414,683 | $392,316 | $269,657 | $243,038 | $238,460 |
| 1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
The accompanying notes are an integral part of these financial statements.
Allspring VT Small Cap Growth Fund | 17
Notes to financial statements (unaudited)
1. ORGANIZATION
Allspring Variable 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 VT Small Cap Growth Fund (the "Fund") which is a diversified series of the Trust. The Trust offers shares of the Fund to separate accounts of various life insurance companies as funding vehicles for certain variable annuity contracts and variable life insurance policies.
Effective on November 1, 2021, the sale transaction of Wells Fargo Asset Management ("WFAM") by Wells Fargo & Company to GTCR LLC and Reverence Capital Partners, L.P. was closed. In connection with the closing of the transaction, WFAM became known as Allspring Global Investments (“Allspring”) and various entities that provided services to the Fund changed their names to "Allspring", including Allspring Funds Management, LLC, the investment manager to the Fund, Allspring Global Investments, LLC and Allspring Global Investments (UK) Limited, both registered investment advisers providing subadvisory services to certain funds, and Allspring Funds Distributor, LLC, the Fund's principal underwriter. Consummation of the transaction resulted in a new investment management agreement and subadvisory agreement which became effective on November 1, 2021.
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 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.
Securities valuation
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 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 are valued at net asset value. Interests in non-registered investment companies that are redeemable at net asset value are fair valued normally at net asset value.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees 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, unless the determination has been delegated to the Allspring Global Investments Pricing Committee at Allspring Funds Management, LLC ("Allspring Funds Management"). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Allspring Global Investments Pricing Committee which may include items for ratification.
Securities lending
The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives interest or dividends on those securities. Cash collateral received in connection with its securities lending transactions is invested in Securities Lending Cash Investments, LLC (the "Securities Lending Fund"), an affiliated non-registered investment company. Investments in Securities Lending Fund are valued at the evaluated bid price provided by an independent pricing service. Income earned from investment in the Securities Lending Fund, if any, is included in securities lending income (including from affiliate) (net of fees and rebates) on the Statement of Operations.
In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or
18 | Allspring VT Small Cap Growth Fund
Notes to financial statements (unaudited)
costs in doing so. In such an event, the terms of the agreement allow the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation of its investment of the cash collateral.
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 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. generally accepted accounting principles. 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.
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 June 30, 2022, the aggregate cost of all investments for federal income tax purposes was $288,869,130 and the unrealized gains (losses) consisted of:
| Gross unrealized gains | $ 57,584,780 |
| Gross unrealized losses | (52,007,678) |
| Net unrealized gains | $ 5,577,102 |
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution 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 VT Small Cap Growth Fund | 19
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of June 30, 2022:
| | Quoted prices
(Level 1) | Other significant
observable inputs
(Level 2) | Significant
unobservable inputs
(Level 3) | Total |
| Assets | | | | |
| Investments in: | | | | |
| Common stocks | | | | |
| Communication services | $ 3,629,023 | $0 | $0 | $ 3,629,023 |
| Consumer discretionary | 33,429,257 | 0 | 0 | 33,429,257 |
| Consumer staples | 15,707,158 | 0 | 0 | 15,707,158 |
| Financials | 17,202,582 | 0 | 0 | 17,202,582 |
| Health care | 73,556,650 | 0 | 0 | 73,556,650 |
| Industrials | 39,782,704 | 0 | 0 | 39,782,704 |
| Information technology | 96,514,191 | 0 | 0 | 96,514,191 |
| Short-term investments | | | | |
| Investment companies | 14,624,667 | 0 | 0 | 14,624,667 |
| Total assets | $294,446,232 | $0 | $0 | $294,446,232 |
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended June 30, 2022, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
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 at the following annual rate based on the Fund’s average daily net assets:
| Average daily net assets | Management fee |
| First $500 million | 0.800% |
| Next $500 million | 0.750 |
| Next $1 billion | 0.700 |
| Next $1 billion | 0.675 |
| Next $2 billion | 0.650 |
| Next $5 billion | 0.640 |
| Over $10 billion | 0.630 |
For the six months ended June 30, 2022, 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 ("Allspring Investments"), 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.
20 | Allspring VT Small Cap Growth 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 services and record-keepers. As compensation for its services under the class-level administration agreement, Allspring Funds Management receives an annual fee of 0.08% which is calculated based on the average daily net assets of each class.
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 April 30, 2023 to waive fees and/or reimburse expenses to the extent necessary to cap expenses. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. As of June 30, 2022, the contractual expense caps are as follows:
| | Expense ratio caps |
| Class 1 | 0.95% |
| Class 2 | 1.20 |
Distribution fee
The Trust has adopted a distribution plan for Class 2 shares pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class 2 shares and paid to Allspring Funds Distributor, LLC, the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.25% of the average daily net assets of Class 2 shares.
Interfund transactions
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.
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 June 30, 2022 were $74,899,139 and $78,032,942, respectively.
6. SECURITIES LENDING TRANSACTIONS
The Fund lends its securities through an unaffiliated securities lending agent and receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any increases or decreases in the required collateral are exchanged between the Fund and the counterparty on the next business day. Cash collateral received is invested in the Securities Lending Fund which seeks to provide a positive return compared to the daily Federal Funds Open Rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments and is exempt from registration under Section 3(c)(7) of the 1940 Act. Securities Lending Fund is managed by Allspring Funds Management and is subadvised by Allspring Investments. Allspring Funds Management receives an advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Securities Lending Fund increase. All of the fees received by Allspring Funds Management are paid to Allspring Investments for its services as subadviser.
In the event of counterparty default or the failure of a borrower to return a loaned security, the Fund has the right to use the collateral to offset any losses incurred. As of June 30, 2022, the Fund had securities lending transactions with the following counterparties which are subject to offset:
Allspring VT Small Cap Growth Fund | 21
Notes to financial statements (unaudited)
| Counterparty | Value of
securities on
loan | Collateral
received1 | Net amount |
| Bank of America Securities Incorporated | $ 832,858 | $ (832,858) | $0 |
| Citigroup Global Markets Incorporated | 558,134 | (558,134) | 0 |
| JPMorgan Securities LLC | 4,107,022 | (4,107,022) | 0 |
| Morgan Stanley & Co. LLC | 4,139,046 | (4,139,046) | 0 |
| UBS Securities LLC | 39,996 | (39,996) | 0 |
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust, Allspring Master Trust and Allspring Funds Trust (excluding the money market funds) are parties to a $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 in effect on that day plus 1.25% or the overnight bank funding rate in effect on that day plus 1.25%. In addition, an annual commitment fee equal to 0.20% (0.25% prior to June 7, 2022) of the unused balance is allocated to each participating fund.
For the six months ended June 30, 2022, there were no borrowings by the Fund under the agreement.
8. CONCENTRATION RISKS
As of the end of the period, the Fund concentrated its portfolio of investments in the health care and information technology sectors. 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.
9. INDEMNIFICATION
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.
10. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial markets.
22 | Allspring VT Small Cap Growth Fund
Other information (unaudited)
PROXY VOTING 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 1-800-260-5969, 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 VT Small Cap Growth Fund | 23
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Allspring family of funds, which consists of 136 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information1. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
William R. Ebsworth
(Born 1957) | Trustee,
since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A |
Jane A. Freeman
(Born 1953) | Trustee,
since 2015;
Chair Liaison,
since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A |
Isaiah Harris, Jr.
(Born 1952) | Trustee,
since 2009; Audit
Committee
Chair,
since 2019 | Retired. Chairman of the Board of CIGNA Corporation from 2009 to 2021, and Director from 2005 to 2008. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Fellowship of Christian Athletes. Mr. Harris is a certified public accountant (inactive status). | N/A |
David F. Larcker
(Born 1950) | Trustee,
since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business (Emeritus), Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
24 | Allspring VT Small Cap Growth Fund
Other information (unaudited)
Name and
year of birth | Position held and
length of service* | Principal occupations during past five years or longer | Current other
public company or
investment
company
directorships |
Olivia S. Mitchell
(Born 1953) | Trustee,
since 2006;
Nominating and
Governance
Committee Chair,
since 2018 | International Foundation of Employee Benefit Plans Professor since 1993, Wharton School of the University of Pennsylvania. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously taught at Cornell University from 1978 to 1993. | N/A |
Timothy J. Penny
(Born 1951) | Trustee,
since 1996;
Chair,
since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A |
James G. Polisson
(Born 1959) | Trustee,
since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A |
Pamela Wheelock
(Born 1959) | Trustee,
since January
2020; previously
Trustee from
January 2018 to
July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019. Interim President of the McKnight Foundation from January to September 2020. McKnight Foundation Consultant, November 2020 to February 2021. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Consultant (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring VT Small Cap Growth Fund | 25
Other information (unaudited)
Officers2
Name and
year of birth | Position held and
length of service | Principal occupations during past five years or longer |
Andrew Owen
(Born 1960) | President,
since 2017 | President, Chief Executive Officer and Director of Allspring Funds Management, LLC since 2017 and co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, since 2019. Prior thereto, Head of Affiliated Managers, Allspring Global Investments, from 2014 to 2019 and Executive Vice President responsible for marketing, investments and product development for Allspring Funds Management, LLC, from 2009 to 2014. In addition, Mr. Owen was an Executive Vice President of Wells Fargo & Company from 2014 to 2021. |
Jeremy DePalma
(Born 1974) | Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds in the
Fund Complex) | Senior Vice President of Allspring Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
Kate McKinley
(Born 1977) | Chief Legal Officer,
since 2021 | Chief Legal Officer of Allspring Global Investments since 2021. Prior thereto, held various roles at State Street Global Advisors beginning in 2010, including serving as Senior Vice President and General Counsel from 2019 to 2021, and Chief Operating Officer of the Institutional Client Group from 2016 - 2019. Prior to working at State Street Global Advisors served as Assistant General Counsel for Bank of America Corporation from 2005 to 2010 and as an Associate at WilmerHale from 2002 to 2005. |
Christopher Baker
(Born 1976) | Chief Compliance Officer, since 2022 | Global Chief Compliance Officer for Allspring Global Investments since 2022. Prior thereto, Chief Compliance Officer for State Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015 Vice President, Global Head of Investment and Marketing Compliance for State Street Global Advisors. |
Matthew Prasse
(Born 1983) | Secretary,
since 2021 | Senior Counsel of the Allspring Legal Department since 2021. Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021. Previously, Counsel for Barings LLC from 2015 to 2018. Prior to joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at allspringglobal.com.
2 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
26 | Allspring VT Small Cap Growth Fund
Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Allspring Variable Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund's liquidity risk. “Liquidity risk” is defined under the Liquidity Rule as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Allspring Funds Management, LLC (“Allspring Funds Management”), the Fund's investment manager, to administer the Program, and Allspring Funds Management has established a Liquidity Risk Management Council (the "Council") composed of personnel from multiple departments within Allspring Funds Management and its affiliates to assist Allspring Funds Management in the administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund's liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund's investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund's assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund's “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 24-25, 2022, the Board received and reviewed a written report (the “Report”) from Allspring Funds Management that, among other things, addressed the operation of the Program and assessed its adequacy and effectiveness for the period from January 1, 2021 through December 31, 2021 (the “Reporting Period”). Other than extended foreign market holidays, no significant liquidity events impacting the Funds were noted in the Report. In addition, other than corporate-related changes to the Program, there were no material changes to the Program during the Reporting Period.
Allspring Funds Management determined in the Report that the Program has been implemented and operates effectively to manage each Fund’s, including the Fund’s, liquidity risk, and Allspring Funds Management continues to believe that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
Allspring VT Small Cap Growth Fund | 27
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: 1-800-260-5969
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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
1-800-260-5969 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.
© 2022 Allspring Global Investments Holdings, LLC. All rights reserved.
PAR-0722-00686 08-22
SVT7/SAR144 06-22
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.
A Portfolio of Investments for each series of Allspring Variable Trust is included as part of the report to shareholders filed under Item 1 of this Form.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS |
Not applicable.
| ITEM 10. | 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 11. | CONTROLS AND PROCEDURES |
(a) The President and Treasurer have concluded that the Allspring Variable 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 controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the most recent fiscal half-year of 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 12. | DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES |
Not applicable.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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 Variable Trust |
| |
| By: | | /s/ Andrew Owen |
| | Andrew Owen |
| | President |
|
| Date: August 25, 2022 |
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 Variable Trust |
| |
| By: | | /s/ Andrew Owen |
| | Andrew Owen |
| | President |
|
| Date: August 25, 2022 |
| |
| By: | | /s/ Jeremy DePalma |
| | Jeremy DePalma |
| | Treasurer |
|
| Date: August 25, 2022 |
