UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Allspring Funds Trust
(Exact name of registrant as specified in charter)
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)
Registrants telephone number, including area code:
800-222-8222
Date of fiscal year end: March 31
Registrant is making a filing for 7 of its series:
Allspring Disciplined Small Cap Fund, Allspring Discovery Innovation Fund, Allspring Discovery Small Cap Growth Fund, Allspring Precious Metals Fund,
Allspring Small Cap Fund, Allspring Special Small Cap Value Fund, Allspring Utility and Telecommunications Fund.
Date of reporting
period: September 30, 2022
ITEM 1. REPORT TO STOCKHOLDERS
Semi-Annual Report
September 30, 2022
Allspring
Disciplined Small Cap Fund
The views expressed and any forward-looking statements are as
of September 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 Disciplined Small Cap
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 Disciplined Small Cap Fund for the six-month period that ended September 30, 2022. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the
worst as the global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling
substantially for the six-month period.
Earlier tailwinds provided by global
stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect of more, plus the
global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Disciplined Small Cap
Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Disciplined Small Cap
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Disciplined Small Cap
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 |
Justin P.
Carr, CFA®‡, Robert M. Wicentowski, CFA®‡ |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (WDSAX)3 |
7-31-2018
|
-23.21
|
0.85
|
7.31
|
|
-18.52
|
2.06
|
7.94
|
|
1.75
|
0.93
|
Class
R6 (WSCJX)4 |
10-31-2016
|
–
|
–
|
–
|
|
-18.23
|
2.17
|
8.09
|
|
1.32
|
0.50
|
Administrator
Class (NVSOX) |
8-1-1993
|
–
|
–
|
–
|
|
-18.50
|
1.90
|
7.86
|
|
1.67
|
0.85
|
Institutional
Class (WSCOX)5 |
10-31-2014
|
–
|
–
|
–
|
|
-18.34
|
2.14
|
8.07
|
|
1.42
|
0.60
|
Russell
2000® Index6 |
–
|
–
|
–
|
–
|
|
-23.50
|
3.55
|
8.55
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. Class R6, Administrator Class and Institutional Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.93% for Class A, 0.50% for Class R6, 0.85% for
Administrator Class, and 0.60% for Institutional Class. 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 the Class A shares prior to their inception reflects the performance of the Administrator Class shares, and is adjusted to reflect the higher expenses and sales charges of the Class A shares. |
4 |
Historical
performance shown for the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included,
returns for the Class R6 shares would be higher. |
5 |
Historical
performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been
included, returns for the Institutional Class shares would be higher. |
6 |
The
Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell
3000® Index, which represents approximately 8% of the total market capitalization of the Russell
3000® Index. 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. The use of derivatives may reduce returns and/or increase volatility. Consult the
Fund’s prospectus for additional information on these and other risks.
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Disciplined Small Cap
Fund
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
Forma
Therapeutics Holdings |
1.02
|
EMCOR
Group Incorporated |
0.91
|
Option
Care Health Incorporated |
0.86
|
Lantheus
Holdings Incorporated |
0.84
|
SPS
Commerce Incorporated |
0.82
|
AMN
Healthcare Services Incorporated |
0.78
|
Mueller
Industries Incorporated |
0.77
|
Atkore
Incorporated |
0.76
|
WESCO
International Incorporated |
0.76
|
International
Money Express Incorporated |
0.74
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Disciplined Small Cap
Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, shareholder servicing 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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
822.34 |
$4.11
|
0.90%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.56
|
$4.56
|
0.90%
|
Class
R6 |
|
|
|
|
Actual
|
$1,000.00
|
$
823.88 |
$2.29
|
0.50%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.56
|
$2.54
|
0.50%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
822.68 |
$3.88
|
0.85%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.81
|
$4.31
|
0.85%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
823.23 |
$2.74
|
0.60%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,022.06
|
$3.04
|
0.60%
|
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 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Disciplined Small Cap
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 96.69% |
|
|
|
|
|
Communication
services: 2.62% |
|
|
|
|
|
Diversified
telecommunication services: 0.58% |
|
|
|
|
|
Charge
Enterprises Incorporated † |
|
|
|
13,555
|
$
23,857 |
Echostar
Corporation Class A † |
|
|
|
4,173
|
68,729
|
|
|
|
|
|
92,586
|
Interactive
media & services: 0.42% |
|
|
|
|
|
QuinStreet
Incorporated † |
|
|
|
1,558
|
16,359
|
Ziff
Davis Incorporated |
|
|
|
724
|
49,580
|
|
|
|
|
|
65,939
|
Media:
1.49% |
|
|
|
|
|
Entravision
Communications Corporation Class A |
|
|
|
10,420
|
41,367
|
Gray
Television Incorporated |
|
|
|
3,695
|
52,912
|
Magnite
Incorporated † |
|
|
|
1,161
|
7,628
|
Nexstar
Media Group Incorporated Class A |
|
|
|
545
|
90,933
|
Sinclair
Broadcast Group Incorporated Class A |
|
|
|
900
|
16,281
|
TechTarget
Incorporated † |
|
|
|
466
|
27,587
|
|
|
|
|
|
236,708
|
Wireless
telecommunication services: 0.13% |
|
|
|
|
|
Gogo
Incorporated † |
|
|
|
1,711
|
20,737
|
Consumer
discretionary: 9.81% |
|
|
|
|
|
Auto
components: 0.70% |
|
|
|
|
|
Dana
Incorporated |
|
|
|
3,903
|
44,611
|
Gentherm
Incorporated † |
|
|
|
356
|
17,704
|
Standard
Motor Products Incorporated |
|
|
|
864
|
28,080
|
The
Goodyear Tire & Rubber Company † |
|
|
|
2,035
|
20,533
|
|
|
|
|
|
110,928
|
Diversified
consumer services: 1.97% |
|
|
|
|
|
Chegg
Incorporated † |
|
|
|
2,666
|
56,173
|
Perdoceo
Education Corporation † |
|
|
|
4,173
|
42,982
|
Stride
Incorporated † |
|
|
|
2,692
|
113,145
|
Vivint
Smart Home Incorporated † |
|
|
|
15,119
|
99,483
|
|
|
|
|
|
311,783
|
Hotels,
restaurants & leisure: 1.73% |
|
|
|
|
|
Bloomin'
Brands Incorporated |
|
|
|
5,149
|
94,381
|
Brinker
International Incorporated † |
|
|
|
3,852
|
96,223
|
International
Game Technology plc |
|
|
|
3,853
|
60,877
|
Wingstop
Incorporated |
|
|
|
188
|
23,579
|
|
|
|
|
|
275,060
|
Household
durables: 1.75% |
|
|
|
|
|
Helen
of Troy Limited † |
|
|
|
292
|
28,160
|
Installed
Building Products Incorporated |
|
|
|
311
|
25,188
|
KB
Home Incorporated |
|
|
|
1,184
|
30,689
|
M/I
Homes Incorporated † |
|
|
|
1,022
|
37,027
|
Meritage
Corporation † |
|
|
|
653
|
45,886
|
Skyline
Champion Corporation † |
|
|
|
383
|
20,249
|
Sonos
Incorporated † |
|
|
|
706
|
9,813
|
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Household
durables (continued) |
|
|
|
|
|
Taylor
Morrison Home Corporation † |
|
|
|
2,943
|
$
68,631 |
Universal
Electronics Incorporated † |
|
|
|
616
|
12,117
|
|
|
|
|
|
277,760
|
Internet
& direct marketing retail: 0.32% |
|
|
|
|
|
Overstock.com
Incorporated † |
|
|
|
972
|
23,668
|
Revolve
Group Incorporated † |
|
|
|
1,221
|
26,483
|
|
|
|
|
|
50,151
|
Specialty
retail: 2.49% |
|
|
|
|
|
American
Eagle Outfitters Incorporated |
|
|
|
1,499
|
14,585
|
Asbury
Automotive Group Incorporated † |
|
|
|
585
|
88,394
|
Big
5 Sporting Goods Corporation « |
|
|
|
8,270
|
88,820
|
Genesco
Incorporated † |
|
|
|
531
|
20,879
|
Hibbett
Incorporated |
|
|
|
1,901
|
94,689
|
ODP
Corporation † |
|
|
|
1,067
|
37,505
|
Zumiez
Incorporated † |
|
|
|
2,358
|
50,768
|
|
|
|
|
|
395,640
|
Textiles,
apparel & luxury goods: 0.85% |
|
|
|
|
|
Crocs
Incorporated † |
|
|
|
665
|
45,659
|
G-III
Apparel Group Limited † |
|
|
|
2,489
|
37,211
|
Steven
Madden Limited |
|
|
|
1,931
|
51,500
|
|
|
|
|
|
134,370
|
Consumer
staples: 3.65% |
|
|
|
|
|
Beverages:
0.66% |
|
|
|
|
|
Coca
Cola Bottling Corporation |
|
|
|
99
|
40,761
|
Duckhorn
Portfolio Incorporated † |
|
|
|
4,369
|
63,045
|
|
|
|
|
|
103,806
|
Food
& staples retailing: 1.33% |
|
|
|
|
|
Sprouts
Farmers Market Incorporated † |
|
|
|
765
|
21,229
|
The
Andersons Incorporated |
|
|
|
1,616
|
50,144
|
The
Chef's Warehouse Incorporated † |
|
|
|
1,761
|
51,016
|
United
Natural Foods Incorporated † |
|
|
|
2,593
|
89,121
|
|
|
|
|
|
211,510
|
Food
products: 0.60% |
|
|
|
|
|
John
B. Sanfilippo & Son Incorporated |
|
|
|
373
|
28,247
|
SunOpta
Incorporated † |
|
|
|
1,335
|
12,149
|
The
Simply Good Foods Company † |
|
|
|
1,725
|
55,183
|
|
|
|
|
|
95,579
|
Personal
products: 1.06% |
|
|
|
|
|
Bellring
Brands Incorporated † |
|
|
|
2,421
|
49,897
|
Medifast
Incorporated |
|
|
|
522
|
56,564
|
USANA
Health Sciences Incorporated † |
|
|
|
1,102
|
61,767
|
|
|
|
|
|
168,228
|
Energy: 6.14%
|
|
|
|
|
|
Energy
equipment & services: 1.21% |
|
|
|
|
|
Nabors
Industries Limited † |
|
|
|
356
|
36,116
|
The accompanying notes are an integral part of these financial
statements.
10 | Allspring Disciplined Small Cap
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Energy
equipment & services (continued) |
|
|
|
|
|
Nextier
Oilfield Solutions Incorporated † |
|
|
|
9,168
|
$
67,843 |
Noble
Corporation plc † |
|
|
|
868
|
25,675
|
Oceaneering
International Incorporated † |
|
|
|
4,275
|
34,029
|
US
Silica Holdings Incorporated † |
|
|
|
2,575
|
28,196
|
|
|
|
|
|
191,859
|
Oil,
gas & consumable fuels: 4.93% |
|
|
|
|
|
Arch
Resources Incorporated |
|
|
|
289
|
34,275
|
Callon
Petroleum Company † |
|
|
|
360
|
12,604
|
Chord
Energy Corporation |
|
|
|
338
|
46,228
|
Civitas
Resources Incorporated |
|
|
|
620
|
35,582
|
CVR
Energy Incorporated |
|
|
|
1,860
|
53,903
|
Laredo
Petroleum Incorporated † |
|
|
|
1,288
|
80,951
|
Matador
Resources Company |
|
|
|
1,003
|
49,067
|
PBF
Energy Incorporated Class A † |
|
|
|
1,679
|
59,034
|
PDC
Energy Incorporated |
|
|
|
508
|
29,357
|
Peabody
Energy Corporation † |
|
|
|
4,014
|
99,627
|
Ranger
Oil Corporation Class A |
|
|
|
2,503
|
78,719
|
SM
Energy Company |
|
|
|
2,881
|
108,354
|
Southwestern
Energy Company † |
|
|
|
5,999
|
36,714
|
W&T
Offshore Incorporated † |
|
|
|
4,488
|
26,300
|
World
Fuel Services Corporation |
|
|
|
1,373
|
32,183
|
|
|
|
|
|
782,898
|
Financials: 16.26%
|
|
|
|
|
|
Banks:
10.03% |
|
|
|
|
|
Bank
of N.T. Butterfield & Son Limited |
|
|
|
2,496
|
81,020
|
BankUnited
Incorporated |
|
|
|
2,341
|
79,992
|
Brookline
Bancorp Incorporated |
|
|
|
4,190
|
48,814
|
CNB
Financial Corporation |
|
|
|
2,404
|
56,662
|
Customers
Bancorp Incorporated † |
|
|
|
1,588
|
46,814
|
Enterprise
Financial Service Corporation |
|
|
|
954
|
42,014
|
Financial
Institutions Incorporated |
|
|
|
1,922
|
46,263
|
First
Bancorp of North Carolina |
|
|
|
1,657
|
60,613
|
First
Bancorp of Puerto Rico |
|
|
|
6,230
|
85,226
|
First
Bank |
|
|
|
2,376
|
32,480
|
First
Foundation Incorporated |
|
|
|
2,192
|
39,763
|
First
Interstate BancSystem Class A |
|
|
|
1,427
|
57,579
|
First
Merchants Corporation |
|
|
|
1,418
|
54,848
|
Great
Southern Bancorp Incorporated |
|
|
|
1,097
|
62,606
|
Hancock
Whitney Corporation |
|
|
|
1,621
|
74,258
|
Hanmi
Financial Corporation |
|
|
|
3,344
|
79,186
|
Hilltop
Holdings Incorporated |
|
|
|
2,457
|
61,056
|
NBT
Bancorp Incorporated |
|
|
|
1,998
|
75,824
|
OFG
Bancorp |
|
|
|
2,763
|
69,434
|
Preferred
Bank |
|
|
|
1,097
|
71,557
|
RBB
Bancorp |
|
|
|
3,183
|
66,143
|
Silvergate
Capital Corporation Class A † |
|
|
|
616
|
46,416
|
The
Bancorp Incorporated † |
|
|
|
2,943
|
64,687
|
TriCo
Bancshares |
|
|
|
1,850
|
82,603
|
Univest
Financial Corporation |
|
|
|
1,647
|
38,672
|
Westamerica
Bancorporation |
|
|
|
1,288
|
67,350
|
|
|
|
|
|
1,591,880
|
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 11
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Capital
markets: 1.46% |
|
|
|
|
|
Artisan
Partners Asset Management Incorporated Class A |
|
|
|
1,288
|
$
34,686 |
Evercore
Partners Incorporated Class A |
|
|
|
837
|
68,843
|
Open
Lending Corporation Class A † |
|
|
|
2,587
|
20,799
|
PJT
Partners Incorporated Class A |
|
|
|
526
|
35,147
|
Stifel
Financial Corporation |
|
|
|
1,378
|
71,532
|
|
|
|
|
|
231,007
|
Consumer
finance: 1.13% |
|
|
|
|
|
Atlanticus
Holdings Corporation † |
|
|
|
1,405
|
36,853
|
Enova
International Incorporated † |
|
|
|
1,926
|
56,374
|
Green
Dot Corporation Class A † |
|
|
|
1,751
|
33,234
|
LendingClub
Corporation † |
|
|
|
3,858
|
42,631
|
PROG
Holdings Incorporated † |
|
|
|
743
|
11,130
|
|
|
|
|
|
180,222
|
Insurance:
2.37% |
|
|
|
|
|
American
Equity Investment Life Holding Company |
|
|
|
2,566
|
95,686
|
CNO
Financial Group Incorporated |
|
|
|
5,031
|
90,407
|
Genworth
Financial Incorporated Class A † |
|
|
|
15,065
|
52,728
|
Palomar
Holdings Incorporated † |
|
|
|
255
|
21,349
|
Selective
Insurance Group Incorporated |
|
|
|
653
|
53,154
|
Stewart
Information Services Corporation |
|
|
|
1,440
|
62,842
|
|
|
|
|
|
376,166
|
Thrifts
& mortgage finance: 1.27% |
|
|
|
|
|
Essent
Group Limited |
|
|
|
2,557
|
89,163
|
MGIC
Investment Corporation |
|
|
|
4,195
|
53,780
|
Radian
Group Incorporated |
|
|
|
2,268
|
43,750
|
Walker
& Dunlop Incorporated |
|
|
|
171
|
14,318
|
|
|
|
|
|
201,011
|
Health
care: 19.25% |
|
|
|
|
|
Biotechnology:
8.40% |
|
|
|
|
|
Aduro
Biotech Incorporated ♦† |
|
|
|
4,415
|
0
|
Agenus
Incorporated † |
|
|
|
8,770
|
17,979
|
Alector
Incorporated † |
|
|
|
4,893
|
46,288
|
ALX
Oncology Holdings Incorporated † |
|
|
|
3,605
|
34,500
|
Amicus
Therapeutics Incorporated † |
|
|
|
3,749
|
39,140
|
Arcus
Biosciences Incorporated † |
|
|
|
2,341
|
61,241
|
Arrowhead
Pharmaceuticals Incorporated † |
|
|
|
716
|
23,664
|
Bridgebio
Pharma Incorporated † |
|
|
|
2,439
|
24,244
|
Cullinan
Oncology Incorporated † |
|
|
|
2,354
|
30,178
|
Cytokinetics
Incorporated † |
|
|
|
1,548
|
75,001
|
Dynavax
Technologies Corporation † |
|
|
|
5,752
|
60,051
|
Erasca
Incorporated †« |
|
|
|
5,305
|
41,379
|
Forma
Therapeutics Holdings † |
|
|
|
8,107
|
161,735
|
Gossamer
Bio Incorporated † |
|
|
|
3,376
|
40,444
|
Halozyme
Therapeutics Incorporated † |
|
|
|
2,113
|
83,548
|
Icosavax
Incorporated †« |
|
|
|
6,117
|
19,330
|
Immunovant
Incorporated † |
|
|
|
10,609
|
59,198
|
Intellia
Therapeutics Incorporated † |
|
|
|
698
|
39,060
|
Intercept
Pharmaceuticals Incorporated † |
|
|
|
3,227
|
45,017
|
Iteos
Therapeutics Incorporated † |
|
|
|
2,346
|
44,691
|
Kezar
Life Sciences Incorporated † |
|
|
|
4,276
|
36,816
|
The accompanying notes are an integral part of these financial
statements.
12 | Allspring Disciplined Small Cap
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Biotechnology
(continued) |
|
|
|
|
|
Kiniksa
Pharmaceuticals Limited Class A † |
|
|
|
4,664
|
$
59,886 |
Kodiak
Sciences Incorporated † |
|
|
|
4,203
|
32,531
|
Kymera
Therapeutics Incorporated † |
|
|
|
802
|
17,460
|
Ligand
Pharmaceuticals Incorporated † |
|
|
|
274
|
23,594
|
Organogenesis
Holdings Incorporated Class A † |
|
|
|
3,492
|
11,314
|
Protagonist
Therapeutics Incorporated † |
|
|
|
1,485
|
12,519
|
Prothena
Corporation plc † |
|
|
|
1,822
|
110,468
|
Regenxbio
Incorporated † |
|
|
|
754
|
19,928
|
Sana
Biotechnology Incorporated † |
|
|
|
7,088
|
42,528
|
Ultragenyx
Pharmaceutical Incorporated † |
|
|
|
472
|
19,546
|
|
|
|
|
|
1,333,278
|
Health
care equipment & supplies: 3.04% |
|
|
|
|
|
Axonics
Incorporated † |
|
|
|
774
|
54,521
|
Globus
Medical Incorporated Class A † |
|
|
|
518
|
30,857
|
Lantheus
Holdings Incorporated † |
|
|
|
1,894
|
133,205
|
LivaNova
plc † |
|
|
|
1,068
|
54,222
|
Omnicell
Incorporated † |
|
|
|
531
|
46,213
|
Outset
Medical Incorporated † |
|
|
|
887
|
14,130
|
Shockwave
Medical Incorporated † |
|
|
|
203
|
56,448
|
STAAR
Surgical Company † |
|
|
|
724
|
51,078
|
Surmodics
Incorporated † |
|
|
|
1,395
|
42,408
|
|
|
|
|
|
483,082
|
Health
care providers & services: 4.41% |
|
|
|
|
|
AMN
Healthcare Services Incorporated † |
|
|
|
1,165
|
123,443
|
Apollo
Medical Holdings Incorporated † |
|
|
|
531
|
20,709
|
Cross
Country Healthcare Incorporated † |
|
|
|
1,306
|
37,051
|
Fulgent
Genetics Incorporated † |
|
|
|
472
|
17,993
|
Modivcare
Incorporated † |
|
|
|
500
|
49,840
|
Option
Care Health Incorporated † |
|
|
|
4,356
|
137,083
|
Owens
& Minor Incorporated |
|
|
|
1,692
|
40,777
|
Progyny
Incorporated † |
|
|
|
1,362
|
50,476
|
Select
Medical Holdings Corporation |
|
|
|
1,432
|
31,647
|
Tenet
Healthcare Corporation † |
|
|
|
1,827
|
94,237
|
The
Ensign Group Incorporated |
|
|
|
1,206
|
95,877
|
|
|
|
|
|
699,133
|
Health
care technology: 0.53% |
|
|
|
|
|
Computer
Programs & Systems Incorporated † |
|
|
|
1,718
|
47,898
|
NextGen
Healthcare Incorporated † |
|
|
|
2,048
|
36,250
|
|
|
|
|
|
84,148
|
Life
sciences tools & services: 0.21% |
|
|
|
|
|
Abcellera
Biologics Incorporated † |
|
|
|
3,418
|
33,804
|
Pharmaceuticals:
2.66% |
|
|
|
|
|
Amneal
Pharmaceuticals Incorporated † |
|
|
|
16,388
|
33,104
|
Amphastar
Pharmaceuticals Incorporated † |
|
|
|
1,720
|
48,332
|
Corcept
Therapeutics Incorporated † |
|
|
|
2,575
|
66,023
|
Fulcrum
Therapeutics Incorporated † |
|
|
|
2,498
|
20,209
|
Harmony
Biosciences Holdings † |
|
|
|
678
|
30,029
|
Intra-Cellular
Therapies Incorporated † |
|
|
|
1,265
|
58,860
|
Pacira
Biosciences Incorporated † |
|
|
|
639
|
33,988
|
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 13
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Pharmaceuticals
(continued) |
|
|
|
|
|
Prestige
Consumer Healthcare Incorporated † |
|
|
|
1,661
|
$
82,768 |
Tarsus
Pharmaceuticals Incorporated † |
|
|
|
2,803
|
47,987
|
|
|
|
|
|
421,300
|
Industrials: 14.27%
|
|
|
|
|
|
Aerospace
& defense: 0.78% |
|
|
|
|
|
Moog
Incorporated Class A |
|
|
|
774
|
54,451
|
Vectrus
Incorporated † |
|
|
|
1,964
|
69,526
|
|
|
|
|
|
123,977
|
Building
products: 0.28% |
|
|
|
|
|
Simpson
Manufacturing Company Incorporated |
|
|
|
571
|
44,766
|
Commercial
services & supplies: 0.49% |
|
|
|
|
|
Ennis
Incorporated |
|
|
|
1,931
|
38,871
|
SP
Plus Corporation † |
|
|
|
1,255
|
39,307
|
|
|
|
|
|
78,178
|
Construction
& engineering: 2.40% |
|
|
|
|
|
Comfort
Systems Incorporated |
|
|
|
874
|
85,066
|
EMCOR
Group Incorporated |
|
|
|
1,251
|
144,465
|
MasTec
Incorporated † |
|
|
|
792
|
50,292
|
MYR
Group Incorporated † |
|
|
|
936
|
79,307
|
Primoris
Services Corporation |
|
|
|
1,323
|
21,499
|
|
|
|
|
|
380,629
|
Electrical
equipment: 1.76% |
|
|
|
|
|
Atkore
Incorporated † |
|
|
|
1,553
|
120,839
|
Bloom
Energy Corporation Class A † |
|
|
|
1,191
|
23,808
|
Encore
Wire Corporation |
|
|
|
1,013
|
117,042
|
Enovix
Corporation † |
|
|
|
973
|
17,840
|
|
|
|
|
|
279,529
|
Machinery:
2.77% |
|
|
|
|
|
Alamo
Group Incorporated |
|
|
|
571
|
69,816
|
Hillenbrand
Incorporated |
|
|
|
2,867
|
105,276
|
Mueller
Industries Incorporated |
|
|
|
2,063
|
122,625
|
Nikola
Corporation † |
|
|
|
2,454
|
8,638
|
Titan
International Incorporated † |
|
|
|
4,345
|
52,748
|
Watts
Water Technologies Incorporated |
|
|
|
633
|
79,587
|
|
|
|
|
|
438,690
|
Marine:
0.41% |
|
|
|
|
|
Matson
Incorporated |
|
|
|
1,062
|
65,334
|
Professional
services: 1.72% |
|
|
|
|
|
CBIZ
Incorporated † |
|
|
|
775
|
33,155
|
Insperity
Incorporated |
|
|
|
536
|
54,720
|
Kelly
Services Incorporated Class A |
|
|
|
4,217
|
57,309
|
Science
Applications International Corporation |
|
|
|
500
|
44,215
|
TriNet
Group Incorporated † |
|
|
|
1,170
|
83,327
|
|
|
|
|
|
272,726
|
The accompanying notes are an integral part of these financial
statements.
14 | Allspring Disciplined Small Cap
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Road
& rail: 0.62% |
|
|
|
|
|
Arcbest
Corporation |
|
|
|
1,350
|
$ 98,186
|
Trading
companies & distributors: 3.04% |
|
|
|
|
|
Applied
Industrial Technologies Incorporated |
|
|
|
1,008
|
103,602
|
Boise
Cascade Company |
|
|
|
1,440
|
85,622
|
GMS
Incorporated † |
|
|
|
423
|
16,924
|
Rush
Enterprises Incorporated Class A |
|
|
|
1,765
|
77,413
|
Titan
Machinery Incorporated † |
|
|
|
2,760
|
77,998
|
WESCO
International Incorporated † |
|
|
|
1,008
|
120,335
|
|
|
|
|
|
481,894
|
Information
technology: 12.78% |
|
|
|
|
|
Electronic
equipment, instruments & components: 2.08% |
|
|
|
|
|
Advanced
Energy Industries Incorporated |
|
|
|
576
|
44,588
|
Fabrinet †
|
|
|
|
517
|
49,348
|
Insight
Enterprises Incorporated † |
|
|
|
995
|
81,998
|
Plexus
Corporation † |
|
|
|
512
|
44,831
|
Sanmina
Corporation † |
|
|
|
2,363
|
108,887
|
|
|
|
|
|
329,652
|
IT
services: 2.48% |
|
|
|
|
|
Evertec
Incorporated |
|
|
|
1,418
|
44,454
|
ExlService
Holdings Incorporated † |
|
|
|
188
|
27,704
|
Hackett
Group Incorporated |
|
|
|
3,938
|
69,781
|
International
Money Express Incorporated † |
|
|
|
5,153
|
117,437
|
Marqeta
Incorporated Class A † |
|
|
|
5,630
|
40,086
|
Maximus
Incorporated |
|
|
|
649
|
37,558
|
Perficient
Incorporated † |
|
|
|
693
|
45,059
|
TTEC
Holdings Incorporated |
|
|
|
274
|
12,141
|
|
|
|
|
|
394,220
|
Semiconductors
& semiconductor equipment: 3.57% |
|
|
|
|
|
Axcelis
Technologies Incorporated † |
|
|
|
443
|
26,828
|
Diodes
Incorporated † |
|
|
|
1,121
|
72,764
|
FormFactor
Incorporated † |
|
|
|
1,027
|
25,726
|
Ichor
Holdings Limited † |
|
|
|
1,081
|
26,171
|
Maxlinear
Incorporated † |
|
|
|
982
|
32,033
|
MKS
Instruments Incorporated |
|
|
|
261
|
21,569
|
Onto
Innovation Incorporated † |
|
|
|
982
|
62,897
|
Photronics
Incorporated † |
|
|
|
2,629
|
38,436
|
Rambus
Incorporated † |
|
|
|
1,913
|
48,628
|
Sitime
Corporation † |
|
|
|
279
|
21,966
|
Smart
Global Holdings Incorporated † |
|
|
|
4,010
|
63,639
|
SunPower
Corporation † |
|
|
|
662
|
15,252
|
Synaptics
Incorporated † |
|
|
|
486
|
48,119
|
Ultra
Clean Holdings Incorporated † |
|
|
|
2,395
|
61,671
|
|
|
|
|
|
565,699
|
Software:
4.65% |
|
|
|
|
|
A10
Networks Incorporated |
|
|
|
6,107
|
81,038
|
Adeia
Incorporated |
|
|
|
4,285
|
60,590
|
Amplitude
Incorporated Class A † |
|
|
|
2,843
|
43,981
|
Arlo
Technologies Incorporated † |
|
|
|
7,017
|
32,559
|
Clear
Secure Incorporated Class A † |
|
|
|
1,396
|
31,913
|
eGain
Corporation † |
|
|
|
5,351
|
39,330
|
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 15
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Software
(continued) |
|
|
|
|
|
InterDigital
Incorporated |
|
|
|
1,130
|
$
45,675 |
JFrog
Limited † |
|
|
|
1,715
|
37,919
|
Rimini
Street Incorporated † |
|
|
|
11,457
|
53,390
|
SPS
Commerce Incorporated † |
|
|
|
1,048
|
130,193
|
Tenable
Holdings Incorporated † |
|
|
|
810
|
28,188
|
Upland
Software Incorporated † |
|
|
|
2,035
|
16,545
|
Verint
Systems Incorporated |
|
|
|
963
|
32,338
|
Workiva
Incorporated † |
|
|
|
343
|
26,685
|
Zeta
Global Holdings Corporation Class A † |
|
|
|
11,709
|
77,396
|
|
|
|
|
|
737,740
|
Materials: 3.64%
|
|
|
|
|
|
Chemicals:
1.33% |
|
|
|
|
|
Advansix
Incorporated |
|
|
|
1,998
|
64,136
|
Futurefuel
Corporation |
|
|
|
2,804
|
16,936
|
Kooper
Holdings Incorporated |
|
|
|
1,242
|
25,809
|
Minerals
Technologies Incorporated |
|
|
|
1,102
|
54,450
|
Tronox
Holdings plc Class A |
|
|
|
4,105
|
50,286
|
|
|
|
|
|
211,617
|
Containers
& packaging: 0.78% |
|
|
|
|
|
Greif
Incorporated Class A |
|
|
|
1,044
|
62,191
|
Myers
Industries Incorporated |
|
|
|
3,745
|
61,680
|
|
|
|
|
|
123,871
|
Metals
& mining: 1.53% |
|
|
|
|
|
Arconic
Corporation † |
|
|
|
1,485
|
25,304
|
Commercial
Metals Company |
|
|
|
3,015
|
106,972
|
Ryerson
Holding Corporation |
|
|
|
1,091
|
28,082
|
Schnitzer
Steel Industries Incorporated Class A |
|
|
|
1,872
|
53,277
|
Suncoke
Energy Incorporated |
|
|
|
4,996
|
29,027
|
|
|
|
|
|
242,662
|
Real
estate: 5.28% |
|
|
|
|
|
Equity
REITs: 4.87% |
|
|
|
|
|
Acadia
Realty Trust |
|
|
|
3,313
|
41,810
|
Armada
Hoffler Properties Incorporated |
|
|
|
2,331
|
24,196
|
Braemar
Hotels & Resorts Incorporated |
|
|
|
12,934
|
55,616
|
BRT
Apartments Corporation REIT |
|
|
|
2,565
|
52,095
|
CareTrust
REIT Incorporated |
|
|
|
2,322
|
42,051
|
DiamondRock
Hospitality |
|
|
|
2,005
|
15,058
|
Easterly
Government Properties Incorporated |
|
|
|
2,543
|
40,103
|
Getty
Realty Corporation |
|
|
|
1,036
|
27,858
|
Global
Medical REIT Incorporated |
|
|
|
1,990
|
16,955
|
Global
Net Lease Incorporated |
|
|
|
7,179
|
76,456
|
iStar
Financial Incorporated |
|
|
|
3,795
|
35,142
|
National
Health Investors Incorporated |
|
|
|
526
|
29,735
|
NexPoint
Residential Trust Incorporated |
|
|
|
1,359
|
62,799
|
Piedmont
Office Realty Trust Incorporated Class A |
|
|
|
4,222
|
44,584
|
STAG
Industrial Incorporated |
|
|
|
3,520
|
100,074
|
The
Macerich Company |
|
|
|
1,305
|
10,362
|
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Disciplined Small Cap
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Equity
REITs (continued) |
|
|
|
|
|
Uniti
Group Incorporated |
|
|
|
3,497
|
$
24,304 |
Urban
Edge Properties |
|
|
|
5,531
|
73,784
|
|
|
|
|
|
772,982
|
Real
estate management & development: 0.41% |
|
|
|
|
|
Newmark
Group Incorporated Class A |
|
|
|
7,945
|
64,037
|
Utilities: 2.99%
|
|
|
|
|
|
Electric
utilities: 1.15% |
|
|
|
|
|
Otter
Tail Corporation |
|
|
|
1,754
|
107,906
|
Portland
General Electric Company |
|
|
|
1,692
|
73,534
|
|
|
|
|
|
181,440
|
Gas
utilities: 0.65% |
|
|
|
|
|
Brookfield
Infrastructure Corporation Class A |
|
|
|
1,477
|
60,114
|
New
Jersey Resources Corporation |
|
|
|
1,111
|
42,996
|
|
|
|
|
|
103,110
|
Independent
power & renewable electricity producers: 0.48% |
|
|
|
|
|
Brookfield
Renewable Corporation Class A |
|
|
|
719
|
23,497
|
Clearway
Energy Incorporated Class A |
|
|
|
1,819
|
52,933
|
|
|
|
|
|
76,430
|
Multi-utilities:
0.59% |
|
|
|
|
|
Black
Hills Corporation |
|
|
|
558
|
37,793
|
Northwestern
Corporation |
|
|
|
1,143
|
56,327
|
|
|
|
|
|
94,120
|
Water
utilities: 0.12% |
|
|
|
|
|
York
Water Company |
|
|
|
482
|
18,523
|
Total
Common stocks (Cost $15,116,511) |
|
|
|
|
15,340,585
|
|
|
Yield
|
|
|
|
Short-term
investments: 3.78% |
|
|
|
|
|
Investment
companies: 3.78% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
453,061
|
453,061
|
Securities
Lending Cash Investments LLC ♠∩∞ |
|
3.08
|
|
147,359
|
147,359
|
Total
Short-term investments (Cost $600,420) |
|
|
|
|
600,420
|
Total
investments in securities (Cost $15,716,931) |
100.47%
|
|
|
|
15,941,005
|
Other
assets and liabilities, net |
(0.47)
|
|
|
|
(75,039)
|
Total
net assets |
100.00%
|
|
|
|
$15,865,966
|
†
|
Non-income-earning
security |
♦
|
The
security is fair valued in accordance with procedures approved by the Board of Trustees. |
«
|
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 |
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 17
Portfolio of
investments—September 30, 2022 (unaudited)
Investments in
affiliates
An affiliated investment is an investment in which the
Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of
the period were as follows:
|
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 |
$561,734
|
$1,857,694
|
$(1,966,367)
|
$0
|
|
$0
|
|
$
453,061 |
453,061
|
$
2,786 |
Securities
Lending Cash Investments LLC |
360,950
|
1,157,063
|
(1,370,654)
|
0
|
|
0
|
|
147,359
|
147,359
|
1,388
# |
|
|
|
|
$0
|
|
$0
|
|
$600,420
|
|
$4,174
|
# |
Amount
shown represents income before fees and rebates. |
Futures
contracts
Description
|
Number
of contracts |
Expiration
date |
Notional
cost |
Notional
value |
Unrealized
gains |
Unrealized
losses |
Long
|
|
|
|
|
|
|
Micro
E-Mini Russell 2000 Index |
56
|
12-16-2022
|
$531,980
|
$467,544
|
$0
|
$(64,436)
|
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Disciplined Small Cap
Fund
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities (including $143,613 of securities loaned), at value (cost
$15,116,511)
|
$
15,340,585 |
Investments in affiliated securities, at value (cost
$600,420)
|
600,420
|
Cash
|
516
|
Cash at broker segregated for futures
contracts
|
49,500
|
Receivable for
dividends
|
11,314
|
Receivable from
manager
|
10,122
|
Receivable for Fund shares
sold
|
8,925
|
Receivable for securities lending income,
net
|
555
|
Prepaid expenses and other
assets
|
34,662
|
Total
assets
|
16,056,599
|
Liabilities
|
|
Payable upon receipt of securities
loaned
|
147,359
|
Professional fees
payable
|
17,145
|
Custody and accounting fees
payable
|
13,292
|
Payable for daily variation margin on open futures
contracts
|
3,447
|
Trustees’ fees and expenses
payable
|
3,331
|
Administration fees
payable
|
1,942
|
Payable for Fund shares
redeemed
|
92
|
Accrued expenses and other
liabilities
|
4,025
|
Total
liabilities
|
190,633
|
Total net
assets
|
$15,865,966
|
Net
assets consist of |
|
Paid-in
capital
|
$
14,951,114 |
Total distributable
earnings
|
914,852
|
Total net
assets
|
$15,865,966
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
533,656 |
Shares outstanding – Class
A1
|
54,929
|
Net asset value per share – Class
A |
$9.72
|
Maximum offering price per share – Class
A2
|
$10.31
|
Net assets – Class
R6
|
$
206,099 |
Shares outstanding – Class
R61
|
21,499
|
Net asset value per share – Class
R6
|
$9.59
|
Net assets – Administrator
Class
|
$
14,310,516 |
Shares outstanding – Administrator
Class1
|
1,483,509
|
Net asset value per share – Administrator
Class
|
$9.65
|
Net assets – Institutional
Class
|
$
815,695 |
Shares outstanding – Institutional
Class1
|
84,622
|
Net
asset value per share – Institutional
Class
|
$9.64
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 19
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends (net of foreign withholdings taxes of
$413)
|
$
123,206 |
Income from affiliated
securities
|
4,828
|
Total investment
income
|
128,034
|
Expenses
|
|
Management
fee
|
47,011
|
Administration
fees |
|
Class
A |
634
|
Class
R6
|
33
|
Administrator
Class
|
11,037
|
Institutional
Class
|
649
|
Shareholder
servicing fees |
|
Class
A |
754
|
Administrator
Class
|
21,224
|
Custody and accounting
fees
|
14,017
|
Professional
fees
|
25,548
|
Registration
fees
|
30,835
|
Shareholder report
expenses
|
10,307
|
Trustees’ fees and
expenses
|
11,176
|
Other fees and
expenses
|
6,772
|
Total
expenses
|
179,997
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(101,451)
|
Class
A |
(119)
|
Class
R6
|
(11)
|
Administrator
Class
|
(83)
|
Net
expenses
|
78,333
|
Net investment
income
|
49,701
|
Realized
and unrealized gains (losses) on investments |
|
Net
realized gains (losses) on |
|
Unaffiliated
securities
|
982,808
|
Futures
contracts
|
(22,669)
|
Net realized gains on
investments
|
960,139
|
Net
change in unrealized gains (losses) on |
|
Unaffiliated
securities
|
(4,766,334)
|
Futures
contracts
|
(94,541)
|
Net change in unrealized gains (losses) on
investments
|
(4,860,875)
|
Net realized and unrealized gains (losses) on
investments
|
(3,900,736)
|
Net decrease in net assets resulting from
operations
|
$(3,851,035)
|
The accompanying notes are an integral part of these
financial statements.
20 | Allspring Disciplined Small Cap
Fund
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
income
|
|
$
49,701 |
|
$
35,192 |
Net realized gains on
investments
|
|
960,139
|
|
2,783,921
|
Net change in unrealized gains (losses) on
investments
|
|
(4,860,875)
|
|
(2,322,678)
|
Net increase (decrease) in net assets resulting from
operations
|
|
(3,851,035)
|
|
496,435
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
R6
|
|
0
|
|
(248)
|
Administrator
Class
|
|
0
|
|
(35,284)
|
Institutional
Class
|
|
0
|
|
(9,783)
|
Total distributions to
shareholders
|
|
0
|
|
(45,315)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
1,801
|
19,523
|
36,903
|
451,068
|
Class
R6
|
1,807
|
18,248
|
8,565
|
101,266
|
Administrator
Class
|
48,035
|
527,117
|
88,246
|
1,054,709
|
Institutional
Class
|
688
|
7,147
|
11,224
|
134,580
|
|
|
572,035
|
|
1,741,623
|
Reinvestment
of distributions |
|
|
|
|
Class
R6
|
0
|
0
|
21
|
248
|
Administrator
Class
|
0
|
0
|
2,936
|
35,233
|
Institutional
Class
|
0
|
0
|
817
|
9,783
|
|
|
0
|
|
45,264
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(2,911)
|
(29,571)
|
(65,850)
|
(791,179)
|
Class
R6
|
(570)
|
(6,187)
|
(1,858)
|
(22,060)
|
Administrator
Class
|
(351,150)
|
(3,687,088)
|
(402,466)
|
(4,858,565)
|
Institutional
Class
|
(17,878)
|
(185,150)
|
(57,438)
|
(686,236)
|
|
|
(3,907,996)
|
|
(6,358,040)
|
Net decrease in net assets resulting from capital share
transactions
|
|
(3,335,961)
|
|
(4,571,153)
|
Total decrease in net
assets
|
|
(7,186,996)
|
|
(4,120,033)
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
23,052,962
|
|
27,172,995
|
End of
period
|
|
$15,865,966
|
|
$23,052,962
|
The accompanying notes are an integral part of these
financial statements.
Allspring Disciplined Small Cap
Fund | 21
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
1 |
Net asset value, beginning of
period
|
$11.82
|
$11.67
|
$6.12
|
$8.39
|
$23.70
|
Net investment income
(loss)
|
0.03
|
0.01
2 |
(0.05)
2 |
(0.00)
2,3 |
0.02
|
Net realized and unrealized gains (losses) on
investments
|
(2.13)
|
0.14
|
5.60
|
(2.22)
|
(3.37)
|
Total from investment
operations
|
(2.10)
|
0.15
|
5.55
|
(2.22)
|
(3.35)
|
Distributions
to shareholders from |
|
|
|
|
|
Net investment
income
|
0.00
|
0.00
|
0.00
|
(0.05)
|
(0.04)
|
Net realized
gains
|
0.00
|
0.00
|
0.00
|
0.00
|
(11.92)
|
Total distributions to
shareholders
|
0.00
|
0.00
|
0.00
|
(0.05)
|
(11.96)
|
Net asset value, end of
period
|
$9.72
|
$11.82
|
$11.67
|
$6.12
|
$8.39
|
Total
return4
|
(17.77)%
|
1.29%
|
90.69%
|
(26.67)%
|
(11.52)%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
Gross
expenses
|
2.02%
|
1.74%
|
1.81%
|
1.40%
|
1.14%
|
Net
expenses
|
0.90%
|
0.91%
|
0.93%
|
0.93%
|
0.92%
|
Net investment income
(loss)
|
0.50%
|
0.05%
|
(0.53)%
|
(0.05)%
|
0.16%
|
Supplemental
data |
|
|
|
|
|
Portfolio turnover
rate
|
28%
|
39%
|
48%
|
67%
|
176%
|
Net assets, end of period (000s
omitted)
|
$534
|
$662
|
$991
|
$102
|
$34
|
1 |
For the
period from July 31, 2018 (commencement of class operations) to March 31, 2019 |
2 |
Calculated
based upon average shares outstanding |
3 |
Amount
is more than $(0.005) |
4 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
22 | Allspring Disciplined Small Cap
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
R6 |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$11.64
|
$11.45
|
$6.15
|
$8.50
|
$22.63
|
$23.82
|
Net investment
income
|
0.05
1 |
0.06
1 |
0.04
1 |
0.08
1 |
0.06
|
0.07
|
Net realized and unrealized gains (losses) on
investments
|
(2.10)
|
0.14
|
5.51
|
(2.35)
|
(2.19)
|
2.08
|
Total from investment
operations
|
(2.05)
|
0.20
|
5.55
|
(2.27)
|
(2.13)
|
2.15
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.01)
|
(0.25)
|
(0.08)
|
(0.08)
|
(0.06)
|
Net realized
gains
|
0.00
|
0.00
|
0.00
|
0.00
|
(11.92)
|
(3.28)
|
Total distributions to
shareholders
|
0.00
|
(0.01)
|
(0.25)
|
(0.08)
|
(12.00)
|
(3.34)
|
Net asset value, end of
period
|
$9.59
|
$11.64
|
$11.45
|
$6.15
|
$8.50
|
$22.63
|
Total
return2
|
(17.61)%
|
1.76%
|
90.71%
|
(27.03)%
|
(6.75)%
|
8.95%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.59%
|
1.32%
|
1.42%
|
0.89%
|
0.82%
|
1.06%
|
Net
expenses
|
0.50%
|
0.50%
|
0.50%
|
0.50%
|
0.64%
|
0.85%
|
Net investment
income
|
0.90%
|
0.49%
|
0.51%
|
0.95%
|
0.48%
|
0.14%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
28%
|
39%
|
48%
|
67%
|
176%
|
48%
|
Net assets, end of period (000s
omitted)
|
$206
|
$236
|
$155
|
$141
|
$4,014
|
$23,871
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 23
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$11.73
|
$11.59
|
$6.10
|
$8.40
|
$22.53
|
$23.79
|
Net investment
income
|
0.03
1 |
0.02
|
0.02
|
0.02
1 |
0.03
1 |
0.06
|
Net realized and unrealized gains (losses) on
investments
|
(2.11)
|
0.14
|
5.47
|
(2.27)
|
(2.21)
|
2.00
|
Total from investment
operations
|
(2.08)
|
0.16
|
5.49
|
(2.25)
|
(2.18)
|
2.06
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.02)
|
(0.00)
2 |
(0.05)
|
(0.03)
|
(0.04)
|
Net realized
gains
|
0.00
|
0.00
|
0.00
|
0.00
|
(11.92)
|
(3.28)
|
Total distributions to
shareholders
|
0.00
|
(0.02)
|
(0.00)
2 |
(0.05)
|
(11.95)
|
(3.32)
|
Net asset value, end of
period
|
$9.65
|
$11.73
|
$11.59
|
$6.10
|
$8.40
|
$22.53
|
Total
return3
|
(17.73)%
4 |
1.37%
|
90.04%
|
(26.99)%
|
(7.01)%
|
8.52%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.93%
|
1.67%
|
1.75%
|
1.25%
|
1.13%
|
1.30%
|
Net
expenses
|
0.85%
|
0.85%
|
0.85%
|
0.85%
|
0.95%
|
1.20%
|
Net investment
income
|
0.51%
|
0.12%
|
0.17%
|
0.27%
|
0.16%
|
0.12%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
28%
|
39%
|
48%
|
67%
|
176%
|
48%
|
Net assets, end of period (000s
omitted)
|
$14,311
|
$20,963
|
$24,318
|
$17,049
|
$49,911
|
$91,506
|
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. |
4 |
During
the six months ended September 30, 2022, the Fund received payments from a service provider which had a 0.17% impact on the total return. |
The accompanying notes are an integral part of these financial
statements.
24 | Allspring Disciplined Small Cap
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$11.71
|
$11.60
|
$6.10
|
$8.48
|
$22.61
|
$23.82
|
Net investment
income
|
0.04
1 |
0.04
1 |
0.04
1 |
0.06
1 |
0.07
1 |
0.09
|
Net realized and unrealized gains (losses) on
investments
|
(2.11)
|
0.16
|
5.47
|
(2.28)
|
(2.22)
|
2.03
|
Total from investment
operations
|
(2.07)
|
0.20
|
5.51
|
(2.22)
|
(2.15)
|
2.12
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.09)
|
(0.01)
|
(0.16)
|
(0.06)
|
(0.05)
|
Net realized
gains
|
0.00
|
0.00
|
0.00
|
0.00
|
(11.92)
|
(3.28)
|
Total distributions to
shareholders
|
0.00
|
(0.09)
|
(0.01)
|
(0.16)
|
(11.98)
|
(3.33)
|
Net asset value, end of
period
|
$9.64
|
$11.71
|
$11.60
|
$6.10
|
$8.48
|
$22.61
|
Total
return2
|
(17.68)%
|
1.68%
|
90.34%
|
(26.80)%
|
(6.79)%
|
8.81%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.68%
|
1.42%
|
1.51%
|
0.94%
|
0.89%
|
1.07%
|
Net
expenses
|
0.60%
|
0.60%
|
0.60%
|
0.60%
|
0.71%
|
0.95%
|
Net investment
income
|
0.77%
|
0.36%
|
0.47%
|
0.69%
|
0.41%
|
0.37%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
28%
|
39%
|
48%
|
67%
|
176%
|
48%
|
Net assets, end of period (000s
omitted)
|
$816
|
$1,192
|
$1,708
|
$1,586
|
$25,658
|
$67,798
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Disciplined Small Cap
Fund | 25
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Disciplined Small
Cap Fund (the "Fund") which is a diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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.
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 the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds
Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any
actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio
of investments.
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.
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 security values and is subject
to equity price risk. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an
illiquid market. Futures contracts are generally entered into on a
26 | Allspring Disciplined Small Cap
Fund
Notes to financial statements
(unaudited)
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. 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 September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $15,760,587 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$
2,419,488 |
Gross
unrealized losses |
(2,303,506)
|
Net
unrealized gains |
$
115,982 |
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are
allocated daily to each class of shares based on the relative proportion of net assets of each class.
Allspring Disciplined Small Cap
Fund | 27
Notes to financial statements
(unaudited)
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
415,970 |
$0
|
$0
|
$
415,970 |
Consumer
discretionary |
1,555,692
|
0
|
0
|
1,555,692
|
Consumer
staples |
579,123
|
0
|
0
|
579,123
|
Energy
|
974,757
|
0
|
0
|
974,757
|
Financials
|
2,580,286
|
0
|
0
|
2,580,286
|
Health
care |
3,054,745
|
0
|
0
|
3,054,745
|
Industrials
|
2,263,909
|
0
|
0
|
2,263,909
|
Information
technology |
2,027,311
|
0
|
0
|
2,027,311
|
Materials
|
578,150
|
0
|
0
|
578,150
|
Real
estate |
837,019
|
0
|
0
|
837,019
|
Utilities
|
473,623
|
0
|
0
|
473,623
|
Short-term
investments |
|
|
|
|
Investment
companies |
600,420
|
0
|
0
|
600,420
|
Total
assets |
$15,941,005
|
$0
|
$0
|
$15,941,005
|
Liabilities |
|
|
|
|
Futures
contracts |
$
64,436 |
$0
|
$0
|
$
64,436 |
Total
liabilities |
$
64,436 |
$0
|
$0
|
$
64,436 |
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 September 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
28 | Allspring Disciplined Small Cap
Fund
Notes to financial statements
(unaudited)
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
$1 billion |
0.500%
|
Next
$4 billion |
0.475
|
Next
$5 billion |
0.440
|
Over
$10 billion |
0.430
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC ("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 0.35% and declining to 0.25% 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 servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
R6 |
0.03
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 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 September 30, 2022, the contractual expense caps are as follows:
|
Expense
ratio caps |
Class
A |
0.93%
|
Class
R6 |
0.50
|
Administrator
Class |
0.85
|
Institutional
Class |
0.60
|
Allspring Disciplined Small Cap
Fund | 29
Notes to financial statements
(unaudited)
Sales charges
Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), an affiliate
of Allspring Funds Management, the principal underwriter, is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds
Distributor did not receive any front-end or contingent deferred sales charges from Class A shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
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 September 30, 2022 were $5,073,809 and $8,316,660, 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 September 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 |
National
Financial Services LLC |
$
18,231 |
$
(18,231) |
$0
|
Morgan
Stanley & Co. LLC |
125,382
|
(125,382)
|
0
|
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2022, the Fund
entered into futures contracts for economic hedging purposes. The Fund had an average notional amount of $457,452 in long futures contracts during the six months ended September 30, 2022.
The fair value, realized gains or losses and change in
unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
8. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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
30 | Allspring Disciplined Small Cap
Fund
Notes to financial statements
(unaudited)
on a borrowing rate equal to the higher of the Federal Funds rate or the
overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused balance is allocated to each participating fund.
For the six months ended September 30, 2022, there were no
borrowings by the Fund under the agreement.
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 Disciplined Small Cap
Fund | 31
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 1-800-222-8222, 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.
32 | Allspring Disciplined Small Cap
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 124 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 Disciplined Small Cap
Fund | 33
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
34 | Allspring Disciplined Small Cap
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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 Disciplined Small Cap
Fund | 35
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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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.
36 | Allspring Disciplined Small Cap
Fund
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00366 11-22
SA243/SAR243 09-22
Semi-Annual Report
September 30, 2022
Allspring
Discovery Small Cap Growth Fund
(formerly, Allspring Fundamental Small Cap Growth Fund)
The views expressed and any forward-looking statements are as
of September 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 Discovery 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 Discovery Small Cap Growth Fund for the six-month period that ended September 30, 2022. Effective May 2, 2022, the Fund changed its name from Allspring Fundamental Small Cap Growth Fund to Allspring Discovery Small
Cap Growth Fund. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the worst as the global economy faced multiple challenges and the strength of the U.S. dollar eroded
already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling substantially for the six-month period.
Earlier tailwinds provided by global
stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect of more, plus the
global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Discovery Small Cap Growth
Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Discovery Small Cap Growth
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Discovery 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 |
Michael T.
Smith, CFA®‡, Christopher J. Warner, CFA®‡ |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (EGWAX) |
6-5-1995
|
-43.82
|
5.03
|
8.06
|
|
-40.38
|
6.28
|
8.70
|
|
1.44
|
1.23
|
Class
C (EGWCX) |
7-30-2010
|
-41.86
|
5.51
|
8.06
|
|
-40.86
|
5.51
|
8.06
|
|
2.19
|
1.98
|
Class
R6 (EGWRX)3 |
5-29-2020
|
–
|
–
|
–
|
|
-40.17
|
6.68
|
9.09
|
|
1.01
|
0.80
|
Administrator
Class (EGWDX) |
7-30-2010
|
–
|
–
|
–
|
|
-40.24
|
6.67
|
9.00
|
|
1.36
|
1.15
|
Institutional
Class (EGRYX) |
11-19-1997
|
–
|
–
|
–
|
|
-40.24
|
6.63
|
9.06
|
|
1.11
|
0.90
|
Russell
2000® Growth Index4 |
–
|
–
|
–
|
–
|
|
-29.27
|
3.60
|
8.81
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class and Institutional
Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.23% for Class A, 1.98% for Class C, 0.80% for Class R6,
1.15% for Administrator Class, and 0.90% for Institutional Class. 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 the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included,
returns for the Class R6 shares would be higher. |
4 |
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.
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Discovery Small Cap Growth
Fund
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
HealthEquity
Incorporated |
3.32
|
Wingstop
Incorporated |
2.88
|
WNS
Holdings Limited ADR |
2.67
|
Casella
Waste Systems Incorporated Class A |
2.50
|
MGP
Ingredients Incorporated |
2.35
|
Saia
Incorporated |
2.35
|
Shockwave
Medical Incorporated |
2.28
|
Tetra
Tech Incorporated |
2.27
|
Rexford
Industrial Realty Incorporated |
2.26
|
Option
Care Health Incorporated |
1.96
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Discovery Small Cap Growth
Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
762.48 |
$5.43
|
1.23%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,018.90
|
$6.23
|
1.23%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
758.97 |
$8.64
|
1.96%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,015.24
|
$9.90
|
1.96%
|
Class
R6 |
|
|
|
|
Actual
|
$1,000.00
|
$
763.59 |
$3.54
|
0.80%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.06
|
$4.05
|
0.80%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
763.96 |
$5.09
|
1.15%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.30
|
$5.82
|
1.15%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
763.09 |
$3.98
|
0.90%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.56
|
$4.56
|
0.90%
|
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 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Discovery Small Cap Growth
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 96.51% |
|
|
|
|
|
Communication
services: 1.98% |
|
|
|
|
|
Interactive
media & services: 1.98% |
|
|
|
|
|
Bumble
Incorporated Class A † |
|
|
|
62,150
|
$
1,335,604 |
IAC/InterActiveCorp †
|
|
|
|
13,688
|
758,041
|
|
|
|
|
|
2,093,645
|
Consumer
discretionary: 11.09% |
|
|
|
|
|
Diversified
consumer services: 1.06% |
|
|
|
|
|
Mister
Car Wash Incorporated † |
|
|
|
130,014
|
1,115,520
|
Hotels,
restaurants & leisure: 4.68% |
|
|
|
|
|
Papa
John's International Incorporated |
|
|
|
27,184
|
1,903,152
|
Wingstop
Incorporated |
|
|
|
24,293
|
3,046,828
|
|
|
|
|
|
4,949,980
|
Internet
& direct marketing retail: 2.89% |
|
|
|
|
|
Global-E
Online Limited † |
|
|
|
51,473
|
1,377,417
|
Xometry
Incorporated Class A †« |
|
|
|
29,566
|
1,679,053
|
|
|
|
|
|
3,056,470
|
Leisure
products: 2.46% |
|
|
|
|
|
Callaway
Golf Company † |
|
|
|
84,264
|
1,622,925
|
Games
Workshop Group plc |
|
|
|
15,358
|
982,046
|
|
|
|
|
|
2,604,971
|
Consumer
staples: 2.35% |
|
|
|
|
|
Beverages:
2.35% |
|
|
|
|
|
MGP
Ingredients Incorporated |
|
|
|
23,436
|
2,487,966
|
Financials: 2.41%
|
|
|
|
|
|
Banks:
1.09% |
|
|
|
|
|
Silvergate
Capital Corporation Class A † |
|
|
|
15,365
|
1,157,753
|
Capital
markets: 0.59% |
|
|
|
|
|
Open
Lending Corporation Class A † |
|
|
|
77,973
|
626,903
|
Insurance:
0.73% |
|
|
|
|
|
Goosehead
Insurance Incorporated Class A † |
|
|
|
21,512
|
766,688
|
Health
care: 29.79% |
|
|
|
|
|
Biotechnology:
5.02% |
|
|
|
|
|
Apellis
Pharmaceuticals Incorporated † |
|
|
|
10,851
|
741,123
|
Ascendis
Pharma AS ADR †« |
|
|
|
8,193
|
846,009
|
Chimerix
Incorporated † |
|
|
|
156,443
|
301,935
|
CRISPR
Therapeutics AG † |
|
|
|
7,563
|
494,242
|
CTI
BioPharma Corporation † |
|
|
|
83,094
|
483,607
|
Fate
Therapeutics Incorporated † |
|
|
|
17,460
|
391,279
|
Halozyme
Therapeutics Incorporated † |
|
|
|
33,133
|
1,310,079
|
Mirati
Therapeutics Incorporated † |
|
|
|
5,892
|
411,497
|
Zentalis
Pharmaceuticals Incorporated † |
|
|
|
15,363
|
332,763
|
|
|
|
|
|
5,312,534
|
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Small Cap Growth
Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Health
care equipment & supplies: 14.08% |
|
|
|
|
|
Axonics
Incorporated † |
|
|
|
12,845
|
$
904,802 |
Cryoport
Incorporated † |
|
|
|
34,934
|
850,992
|
Establishment
Labs Holdings Incorporated † |
|
|
|
14,934
|
815,546
|
ICU
Medical Incorporated † |
|
|
|
4,884
|
735,530
|
Inari
Medical Incorporated † |
|
|
|
23,637
|
1,716,992
|
Inspire
Medical Systems Incorporated † |
|
|
|
10,988
|
1,948,942
|
iRhythm
Technologies Incorporated † |
|
|
|
15,571
|
1,950,735
|
Lantheus
Holdings Incorporated † |
|
|
|
20,081
|
1,412,297
|
Shockwave
Medical Incorporated † |
|
|
|
8,669
|
2,410,589
|
Treace
Medical Concepts Incorporated † |
|
|
|
57,594
|
1,271,100
|
UFP
Technologies Incorporated † |
|
|
|
10,174
|
873,336
|
|
|
|
|
|
14,890,861
|
Health
care providers & services: 5.95% |
|
|
|
|
|
Amedisys
Incorporated † |
|
|
|
7,353
|
711,697
|
HealthEquity
Incorporated † |
|
|
|
52,189
|
3,505,530
|
Option
Care Health Incorporated † |
|
|
|
65,953
|
2,075,541
|
|
|
|
|
|
6,292,768
|
Life
sciences tools & services: 4.09% |
|
|
|
|
|
Azenta
Incorporated |
|
|
|
16,844
|
721,934
|
Inotiv
Incorporated † |
|
|
|
57,365
|
966,600
|
MaxCyte
Incorporated †« |
|
|
|
152,247
|
989,606
|
Stevanato
Group SpA |
|
|
|
96,867
|
1,640,927
|
|
|
|
|
|
4,319,067
|
Pharmaceuticals:
0.65% |
|
|
|
|
|
Arvinas
Incorporated † |
|
|
|
15,363
|
683,500
|
Industrials: 16.05%
|
|
|
|
|
|
Aerospace
& defense: 1.50% |
|
|
|
|
|
Axon
Enterprise Incorporated † |
|
|
|
13,730
|
1,589,248
|
Building
products: 2.20% |
|
|
|
|
|
Advanced
Drainage Systems Incorporated |
|
|
|
12,518
|
1,556,864
|
Trex
Company Incorporated † |
|
|
|
17,435
|
766,094
|
|
|
|
|
|
2,322,958
|
Commercial
services & supplies: 5.28% |
|
|
|
|
|
Casella
Waste Systems Incorporated Class A † |
|
|
|
34,631
|
2,645,462
|
Ritchie
Bros. Auctioneers Incorporated |
|
|
|
8,627
|
539,015
|
Tetra
Tech Incorporated |
|
|
|
18,643
|
2,396,185
|
|
|
|
|
|
5,580,662
|
Electrical
equipment: 1.68% |
|
|
|
|
|
Allied
Motion Technologies |
|
|
|
62,073
|
1,776,529
|
Professional
services: 1.28% |
|
|
|
|
|
ICF
International Incorporated |
|
|
|
12,430
|
1,355,119
|
Road
& rail: 2.35% |
|
|
|
|
|
Saia
Incorporated † |
|
|
|
13,082
|
2,485,580
|
Trading
companies & distributors: 1.76% |
|
|
|
|
|
SiteOne
Landscape Supply Incorporated † |
|
|
|
17,883
|
1,862,336
|
The accompanying notes are an integral part of these financial
statements.
10 | Allspring Discovery Small Cap
Growth Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Information
technology: 28.96% |
|
|
|
|
|
Electronic
equipment, instruments & components: 5.00% |
|
|
|
|
|
Littelfuse
Incorporated |
|
|
|
7,994
|
$
1,588,328 |
Nayax
Limited † |
|
|
|
41,723
|
990,007
|
Nlight
Incorporated † |
|
|
|
80,845
|
763,985
|
Novanta
Incorporated † |
|
|
|
16,813
|
1,944,423
|
|
|
|
|
|
5,286,743
|
IT
services: 9.23% |
|
|
|
|
|
Globant
SA † |
|
|
|
10,238
|
1,915,325
|
Keywords
Studios plc |
|
|
|
67,233
|
1,715,096
|
Marqeta
Incorporated Class A † |
|
|
|
122,583
|
872,791
|
Shift4
Payments Incorporated Class A † |
|
|
|
34,193
|
1,525,350
|
StoneCo
Limited Class A † |
|
|
|
96,075
|
915,595
|
WNS
Holdings Limited ADR † |
|
|
|
34,451
|
2,819,470
|
|
|
|
|
|
9,763,627
|
Semiconductors
& semiconductor equipment: 2.20% |
|
|
|
|
|
Impinj
Incorporated † |
|
|
|
22,588
|
1,807,718
|
Sitime
Corporation † |
|
|
|
6,569
|
517,177
|
|
|
|
|
|
2,324,895
|
Software:
12.53% |
|
|
|
|
|
Bill.com
Holdings Incorporated † |
|
|
|
10,600
|
1,403,122
|
CCC
Intelligent Solutions † |
|
|
|
88,579
|
806,069
|
Clearwater
Analytics Holdings Incorporated Class A † |
|
|
|
63,110
|
1,059,617
|
CS
Disco Incorporated † |
|
|
|
45,033
|
450,330
|
Five9
Incorporated † |
|
|
|
20,454
|
1,533,641
|
Gitlab
Incorporated Class A † |
|
|
|
17,819
|
912,689
|
Jamf
Holding Corporation † |
|
|
|
63,626
|
1,409,952
|
Lightspeed
Commerce Incorporated † |
|
|
|
31,326
|
550,711
|
Olo
Incorporated Class A † |
|
|
|
134,351
|
1,061,373
|
SentinelOne,
Incorporated Class A † |
|
|
|
31,549
|
806,392
|
Sprout
Social Incorporated Class A † |
|
|
|
32,297
|
1,959,782
|
Workiva
Incorporated † |
|
|
|
16,681
|
1,297,782
|
|
|
|
|
|
13,251,460
|
Materials: 0.59%
|
|
|
|
|
|
Chemicals:
0.27% |
|
|
|
|
|
Aspen
Aerogels Incorporated † |
|
|
|
30,257
|
278,970
|
Containers
& packaging: 0.32% |
|
|
|
|
|
Ranpak
Holdings Corporation † |
|
|
|
99,060
|
338,785
|
Real
estate: 3.29% |
|
|
|
|
|
Equity
REITs: 2.26% |
|
|
|
|
|
Rexford
Industrial Realty Incorporated |
|
|
|
46,009
|
2,392,468
|
Real
estate management & development: 1.03% |
|
|
|
|
|
DigitalBridge
Group Incorporated |
|
|
|
86,816
|
1,086,068
|
Total
Common stocks (Cost $113,647,116) |
|
|
|
|
102,054,074
|
The
accompanying notes are an integral part of these financial statements.
Allspring Discovery Small Cap Growth
Fund | 11
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
Yield
|
|
Shares
|
Value
|
Short-term
investments: 6.58% |
|
|
|
|
|
Investment
companies: 6.58% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
3,764,268
|
$
3,764,268 |
Securities
Lending Cash Investments LLC ♠∩∞ |
|
3.08
|
|
3,194,700
|
3,194,700
|
Total
Short-term investments (Cost $6,958,968) |
|
|
|
|
6,958,968
|
Total
investments in securities (Cost $120,606,084) |
103.09%
|
|
|
|
109,013,042
|
Other
assets and liabilities, net |
(3.09)
|
|
|
|
(3,268,624)
|
Total
net assets |
100.00%
|
|
|
|
$105,744,418
|
†
|
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 |
$1,852,545
|
$16,378,435
|
$(14,466,712)
|
$0
|
|
$0
|
|
$
3,764,268 |
3,764,268
|
$
27,450 |
Securities
Lending Cash Investments LLC |
5,055,425
|
24,651,377
|
(26,512,102)
|
0
|
|
0
|
|
3,194,700
|
3,194,700
|
29,684
# |
|
|
|
|
$0
|
|
$0
|
|
$6,958,968
|
|
$57,134
|
# |
Amount
shown represents income before fees and rebates. |
The accompanying notes are an integral part of these
financial statements.
12 | Allspring Discovery Small Cap
Growth Fund
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities (including $3,114,664 of securities loaned), at value (cost
$113,647,116)
|
$
102,054,074 |
Investments in affiliated securities, at value (cost
$6,958,968)
|
6,958,968
|
Foreign currency, at value (cost
$348)
|
291
|
Receivable for investments
sold
|
1,405,291
|
Receivable for Fund shares
sold
|
137,046
|
Receivable for
dividends
|
26,986
|
Receivable for securities lending income,
net
|
1,487
|
Prepaid expenses and other
assets
|
90,459
|
Total
assets
|
110,674,602
|
Liabilities
|
|
Payable upon receipt of securities
loaned
|
3,194,700
|
Payable for investments
purchased
|
1,558,359
|
Management fee
payable
|
55,053
|
Payable for Fund shares
redeemed
|
49,045
|
Administration fees
payable
|
18,112
|
Trustees’ fees and expenses
payable
|
3,758
|
Overdraft due to custodian
bank
|
600
|
Distribution fee
payable
|
325
|
Accrued expenses and other
liabilities
|
50,232
|
Total
liabilities
|
4,930,184
|
Total net
assets
|
$105,744,418
|
Net
assets consist of |
|
Paid-in
capital
|
$
122,791,214 |
Total distributable
loss
|
(17,046,796)
|
Total net
assets
|
$105,744,418
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
72,874,247 |
Shares outstanding – Class
A1
|
6,451,842
|
Net asset value per share – Class
A |
$11.30
|
Maximum offering price per share – Class
A2
|
$11.99
|
Net assets – Class
C |
$
474,664 |
Shares outstanding – Class
C1
|
52,161
|
Net asset value per share – Class
C |
$9.10
|
Net assets – Class
R6
|
$
2,320,637 |
Shares outstanding – Class
R61
|
160,370
|
Net asset value per share – Class
R6
|
$14.47
|
Net assets – Administrator
Class
|
$
315,857 |
Shares outstanding – Administrator
Class1
|
22,642
|
Net asset value per share – Administrator
Class
|
$13.95
|
Net assets – Institutional
Class
|
$
29,759,013 |
Shares outstanding – Institutional
Class1
|
2,061,900
|
Net
asset value per share – Institutional
Class
|
$14.43
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Small Cap Growth
Fund | 13
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends (net of foreign withholdings taxes of
$793)
|
$
115,085 |
Income from affiliated
securities
|
27,450
|
Securities lending income (including from affiliate),
net
|
10,954
|
Total investment
income
|
153,489
|
Expenses
|
|
Management
fee
|
498,907
|
Administration
fees |
|
Class
A |
86,723
|
Class
C |
576
|
Class
R6
|
342
|
Administrator
Class
|
247
|
Institutional
Class
|
20,533
|
Shareholder
servicing fees |
|
Class
A |
103,241
|
Class
C |
619
|
Administrator
Class
|
475
|
Distribution
fee |
|
Class
C |
1,762
|
Custody and accounting
fees
|
12,733
|
Professional
fees
|
29,370
|
Registration
fees
|
35,283
|
Shareholder report
expenses
|
25,697
|
Trustees’ fees and
expenses
|
11,176
|
Other fees and
expenses
|
5,497
|
Total
expenses
|
833,181
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(97,784)
|
Class
A |
(50,297)
|
Class
R6
|
(342)
|
Administrator
Class
|
(226)
|
Institutional
Class
|
(18,641)
|
Net
expenses
|
665,891
|
Net investment
loss
|
(512,402)
|
Realized
and unrealized gains (losses) on investments |
|
Net realized losses on
investments
|
(11,628,034)
|
Net change in unrealized gains (losses) on
investments
|
(21,054,108)
|
Net realized and unrealized gains (losses) on
investments
|
(32,682,142)
|
Net decrease in net assets resulting from
operations
|
$(33,194,544)
|
The accompanying notes are an integral part of these
financial statements.
14 | Allspring Discovery Small Cap
Growth Fund
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
loss
|
|
$
(512,402) |
|
$
(1,646,546) |
Net realized gains (losses) on
investments
|
|
(11,628,034)
|
|
19,377,472
|
Net change in unrealized gains (losses) on
investments
|
|
(21,054,108)
|
|
(48,630,162)
|
Net decrease in net assets resulting from
operations
|
|
(33,194,544)
|
|
(30,899,236)
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
0
|
|
(20,423,584)
|
Class
C |
|
0
|
|
(219,886)
|
Class
R6
|
|
0
|
|
(261,203)
|
Administrator
Class
|
|
0
|
|
(73,953)
|
Institutional
Class
|
|
0
|
|
(5,596,005)
|
Total distributions to
shareholders
|
|
0
|
|
(26,574,631)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
66,892
|
815,010
|
332,425
|
6,683,479
|
Class
C |
1,674
|
17,272
|
9,338
|
159,600
|
Class
R6
|
69,223
|
1,049,984
|
101,634
|
2,520,991
|
Administrator
Class
|
3,257
|
48,141
|
19,749
|
478,478
|
Institutional
Class
|
415,978
|
6,297,370
|
1,426,944
|
36,296,515
|
|
|
8,227,777
|
|
46,139,063
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
0
|
0
|
1,111,624
|
20,009,223
|
Class
C |
0
|
0
|
15,071
|
219,886
|
Class
R6
|
0
|
0
|
11,367
|
261,203
|
Administrator
Class
|
0
|
0
|
3,223
|
71,474
|
Institutional
Class
|
0
|
0
|
243,402
|
5,583,641
|
|
|
0
|
|
26,145,427
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(440,138)
|
(5,423,824)
|
(833,733)
|
(16,092,697)
|
Class
C |
(15,682)
|
(159,212)
|
(45,052)
|
(778,561)
|
Class
R6
|
(23,303)
|
(365,728)
|
(15,802)
|
(375,226)
|
Administrator
Class
|
(8,211)
|
(130,620)
|
(10,679)
|
(239,024)
|
Institutional
Class
|
(307,504)
|
(4,774,166)
|
(452,264)
|
(10,422,365)
|
|
|
(10,853,550)
|
|
(27,907,873)
|
Net increase (decrease) in net assets resulting from capital share
transactions
|
|
(2,625,773)
|
|
44,376,617
|
Total decrease in net
assets
|
|
(35,820,317)
|
|
(13,097,250)
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
141,564,735
|
|
154,661,985
|
End of
period
|
|
$105,744,418
|
|
$141,564,735
|
The accompanying notes are an integral part of these
financial statements.
Allspring Discovery Small Cap Growth
Fund | 15
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$14.82
|
$21.39
|
$11.00
|
$13.28
|
$15.32
|
$14.08
|
Net investment
loss
|
(0.06)
1 |
(0.21)
1 |
(0.18)
1 |
(0.10)
1 |
(0.11)
1 |
(0.12)
1 |
Net realized and unrealized gains (losses) on
investments
|
(3.46)
|
(2.94)
|
11.09
|
(1.27)
|
2.17
|
2.35
|
Total from investment
operations
|
(3.52)
|
(3.15)
|
10.91
|
(1.37)
|
2.06
|
2.23
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(3.42)
|
(0.52)
|
(0.91)
|
(4.10)
|
(0.99)
|
Net asset value, end of
period
|
$11.30
|
$14.82
|
$21.39
|
$11.00
|
$13.28
|
$15.32
|
Total
return2
|
(23.75)%
|
(17.57)%
|
99.31%
|
(11.52)%
|
17.46%
|
16.08%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.51%
|
1.44%
|
1.47%
|
1.52%
|
1.51%
|
1.52%
|
Net
expenses
|
1.23%
|
1.23%
|
1.23%
|
1.23%
|
1.23%
|
1.33%
|
Net investment
loss
|
(0.97)%
|
(1.03)%
|
(0.99)%
|
(0.74)%
|
(0.74)%
|
(0.79)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
19%
|
55%
|
55%
|
63%
|
155%
|
44%
|
Net assets, end of period (000s
omitted)
|
$72,874
|
$101,163
|
$132,937
|
$66,472
|
$86,006
|
$84,738
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Discovery Small Cap
Growth Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$11.99
|
$18.08
|
$9.39
|
$11.55
|
$13.94
|
$12.99
|
Net investment
loss
|
(0.09)
1 |
(0.31)
1 |
(0.28)
1 |
(0.18)
1 |
(0.20)
1 |
(0.21)
1 |
Payment from
affiliate
|
0.00
|
0.00
|
0.01
|
0.00
|
0.00
|
0.00
|
Net realized and unrealized gains (losses) on
investments
|
(2.80)
|
(2.36)
|
9.48
|
(1.07)
|
1.91
|
2.15
|
Total from investment
operations
|
(2.89)
|
(2.67)
|
9.21
|
(1.25)
|
1.71
|
1.94
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(3.42)
|
(0.52)
|
(0.91)
|
(4.10)
|
(0.99)
|
Net asset value, end of
period
|
$9.10
|
$11.99
|
$18.08
|
$9.39
|
$11.55
|
$13.94
|
Total
return2
|
(24.10)%
|
(18.16)%
|
98.22%
3 |
(12.30)%
|
16.69%
|
15.17%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
2.13%
|
2.18%
|
2.20%
|
2.26%
|
2.26%
|
2.27%
|
Net
expenses
|
1.96%
|
1.98%
|
1.98%
|
1.98%
|
1.98%
|
2.08%
|
Net investment
loss
|
(1.71)%
|
(1.79)%
|
(1.74)%
|
(1.49)%
|
(1.48)%
|
(1.54)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
19%
|
55%
|
55%
|
63%
|
155%
|
44%
|
Net assets, end of period (000s
omitted)
|
$475
|
$793
|
$1,569
|
$395
|
$349
|
$274
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
3 |
During
the year ended March 31, 2021, the Fund received a payment from an affiliate which had a 0.09% impact on the total return. |
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Small Cap Growth
Fund | 17
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
R6 |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
1 |
Net asset value, beginning of
period
|
$18.95
|
$26.29
|
$17.87
|
Net investment
loss
|
(0.04)
2 |
(0.14)
2 |
(0.11)
2 |
Net realized and unrealized gains (losses) on
investments
|
(4.44)
|
(3.78)
|
9.05
|
Total from investment
operations
|
(4.48)
|
(3.92)
|
8.94
|
Distributions
to shareholders from |
|
|
|
Net realized
gains
|
0.00
|
(3.42)
|
(0.52)
|
Net asset value, end of
period
|
$14.47
|
$18.95
|
$26.29
|
Total
return3
|
(23.64)%
|
(17.21)%
|
50.11%
|
Ratios
to average net assets (annualized) |
|
|
|
Gross
expenses
|
1.09%
|
1.02%
|
1.03%
|
Net
expenses
|
0.80%
|
0.80%
|
0.80%
|
Net investment
loss
|
(0.53)%
|
(0.58)%
|
(0.54)%
|
Supplemental
data |
|
|
|
Portfolio turnover
rate
|
19%
|
55%
|
55%
|
Net assets, end of period (000s
omitted)
|
$2,321
|
$2,169
|
$454
|
1 |
For the
period from May 29, 2020 (commencement of class operations) to March 31, 2021 |
2 |
Calculated
based upon average shares outstanding |
3 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Discovery Small Cap
Growth Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$18.26
|
$25.54
|
$12.91
|
$15.43
|
$17.14
|
$15.63
|
Net investment
loss
|
(0.07)
1 |
(0.22)
1 |
(0.20)
1 |
(0.11)
1 |
(0.11)
1 |
(0.11)
1 |
Payment from
affiliate
|
0.00
|
0.00
|
0.11
|
0.00
|
0.00
|
0.00
|
Net realized and unrealized gains (losses) on
investments
|
(4.24)
|
(3.64)
|
13.24
|
(1.50)
|
2.50
|
2.61
|
Total from investment
operations
|
(4.31)
|
(3.86)
|
13.15
|
(1.61)
|
2.39
|
2.50
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(3.42)
|
(0.52)
|
(0.91)
|
(4.10)
|
(0.99)
|
Net asset value, end of
period
|
$13.95
|
$18.26
|
$25.54
|
$12.91
|
$15.43
|
$17.14
|
Total
return2
|
(23.60)%
|
(17.49)%
|
101.97%
3 |
(11.52)%
|
17.59%
|
16.21%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.43%
|
1.37%
|
1.39%
|
1.44%
|
1.43%
|
1.44%
|
Net
expenses
|
1.15%
|
1.15%
|
1.15%
|
1.15%
|
1.15%
|
1.20%
|
Net investment
loss
|
(0.89)%
|
(0.95)%
|
(0.90)%
|
(0.66)%
|
(0.62)%
|
(0.66)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
19%
|
55%
|
55%
|
63%
|
155%
|
44%
|
Net assets, end of period (000s
omitted)
|
$316
|
$504
|
$391
|
$93
|
$104
|
$133
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
3 |
During
the year ended March 31, 2021, the Fund received a payment from an affiliate which had a 0.89% impact on the total return. |
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Small Cap Growth
Fund | 19
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$18.91
|
$26.26
|
$13.39
|
$15.94
|
$17.53
|
$15.94
|
Net investment
loss
|
(0.05)
1 |
(0.17)
1 |
(0.15)
1 |
(0.07)
1 |
(0.07)
1 |
(0.08)
1 |
Net realized and unrealized gains (losses) on
investments
|
(4.43)
|
(3.76)
|
13.54
|
(1.57)
|
2.58
|
2.66
|
Total from investment
operations
|
(4.48)
|
(3.93)
|
13.39
|
(1.64)
|
2.51
|
2.58
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(3.42)
|
(0.52)
|
(0.91)
|
(4.10)
|
(0.99)
|
Net asset value, end of
period
|
$14.43
|
$18.91
|
$26.26
|
$13.39
|
$15.94
|
$17.53
|
Total
return2
|
(23.69)%
|
(17.27)%
|
100.11%
|
(11.29)%
|
17.85%
|
16.40%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.18%
|
1.12%
|
1.14%
|
1.19%
|
1.18%
|
1.19%
|
Net
expenses
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.90%
|
0.98%
|
Net investment
loss
|
(0.64)%
|
(0.69)%
|
(0.66)%
|
(0.41)%
|
(0.41)%
|
(0.44)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
19%
|
55%
|
55%
|
63%
|
155%
|
44%
|
Net assets, end of period (000s
omitted)
|
$29,759
|
$36,936
|
$19,311
|
$7,980
|
$9,695
|
$8,878
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
20 | Allspring Discovery Small Cap
Growth Fund
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Discovery Small
Cap Growth Fund (formerly, Allspring Fundamental Small Cap Growth Fund) (the "Fund") which is a diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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 September 30, 2022, such fair value pricing was used in pricing certain 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 the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds Management is responsible for day-to-day
valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding the valuation of portfolio
securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee.
On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values
of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the 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
Allspring Discovery Small Cap Growth
Fund | 21
Notes to financial statements
(unaudited)
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, 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 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.
As of September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $120,607,438 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$
21,275,948 |
Gross
unrealized losses |
(32,870,344)
|
Net
unrealized losses |
$(11,594,396)
|
As of March 31, 2022, the Fund had
a qualified late-year ordinary loss of $287,091 which was recognized on the first day of the current fiscal year.
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common
22 | Allspring Discovery Small Cap
Growth Fund
Notes to financial statements
(unaudited)
fund-level expenses, and realized and unrealized gains (losses) on investments
are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
2,093,645 |
$
0 |
$0
|
$
2,093,645 |
Consumer
discretionary |
10,744,895
|
982,046
|
0
|
11,726,941
|
Consumer
staples |
2,487,966
|
0
|
0
|
2,487,966
|
Financials
|
2,551,344
|
0
|
0
|
2,551,344
|
Health
care |
31,498,730
|
0
|
0
|
31,498,730
|
Industrials
|
16,972,432
|
0
|
0
|
16,972,432
|
Information
technology |
27,921,622
|
2,705,103
|
0
|
30,626,725
|
Materials
|
617,755
|
0
|
0
|
617,755
|
Real
estate |
3,478,536
|
0
|
0
|
3,478,536
|
Short-term
investments |
|
|
|
|
Investment
companies |
6,958,968
|
0
|
0
|
6,958,968
|
Total
assets |
$105,325,893
|
$3,687,149
|
$0
|
$109,013,042
|
Additional sector, industry or
geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended September 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:
Allspring Discovery Small Cap Growth
Fund | 23
Notes to financial statements
(unaudited)
Average
daily net assets |
Management
fee |
First
$500 million |
0.850%
|
Next
$500 million |
0.825
|
Next
$1 billion |
0.800
|
Next
$1 billion |
0.775
|
Next
$1 billion |
0.750
|
Next
$1 billion |
0.730
|
Next
$5 billion |
0.720
|
Over
$10 billion |
0.710
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC ("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.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Class
R6 |
0.03
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 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 September 30, 2022, the contractual expense caps are as follows:
24 | Allspring Discovery Small Cap
Growth Fund
Notes to financial statements
(unaudited)
|
Expense
ratio caps |
Class
A |
1.23%
|
Class
C |
1.98
|
Class
R6 |
0.80
|
Administrator
Class |
1.15
|
Institutional
Class |
0.90
|
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule
12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.75%
of the average daily net assets of Class C shares.
In
addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also
entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $125 from the sale of Class A shares. No contingent deferred sales
charges were incurred by Class A and Class C shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
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 September 30, 2022 were $21,653,545 and $26,329,830, 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 September 30, 2022, the Fund had securities lending transactions with the following counterparties which are subject to
offset:
Allspring Discovery Small Cap Growth
Fund | 25
Notes to financial statements
(unaudited)
Counterparty
|
Value
of securities on loan |
Collateral
received1 |
Net
amount |
BNP Paribas Securities
Corporation |
$1,334,322
|
$(1,334,322)
|
$0
|
Morgan
Stanley & Co. LLC |
615,720
|
(615,720)
|
0
|
National
Financial Services LLC |
369,264
|
(369,264)
|
0
|
Scotia
Capital (USA) Incorporated |
795,358
|
(795,358)
|
0
|
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 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.
26 | Allspring Discovery 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 1-800-222-8222, 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 Discovery Small Cap Growth
Fund | 27
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 124 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
|
28 | Allspring Discovery 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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Discovery Small Cap Growth
Fund | 29
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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.
30 | Allspring Discovery 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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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 Discovery Small Cap Growth
Fund | 31
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00382 11-22
SA247/SAR247 09-22
Semi-Annual Report
September 30, 2022
The views expressed and any forward-looking statements are as
of September 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 Small Cap 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 Small Cap Fund for the six-month period that ended September 30, 2022. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the worst as the
global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling substantially for the
six-month period.
Earlier tailwinds
provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect
of more, plus the global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Small Cap Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Small Cap Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Small Cap 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 |
Christopher G.
Miller, CFA®‡, Theran Motl, CFA®‡ |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (WFSMX) |
3-31-2008
|
-27.94
|
0.13
|
6.68
|
|
-23.53
|
1.32
|
7.31
|
|
1.67
|
1.23
|
Class
C (WSCDX) |
3-31-2008
|
-25.11
|
0.55
|
6.68
|
|
-24.11
|
0.55
|
6.68
|
|
2.42
|
1.98
|
Class
R6 (WFSJX)3 |
5-29-2020
|
–
|
–
|
–
|
|
-23.21
|
1.74
|
7.75
|
|
1.24
|
0.80
|
Administrator
Class (WFSDX) |
4-8-2005
|
–
|
–
|
–
|
|
-23.47
|
1.44
|
7.49
|
|
1.59
|
1.15
|
Institutional
Class (WFSSX) |
4-8-2005
|
–
|
–
|
–
|
|
-23.28
|
1.67
|
7.71
|
|
1.34
|
0.90
|
Russell
2000® Index4 |
–
|
–
|
–
|
–
|
|
-23.50
|
3.55
|
8.55
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R6, Administrator Class and Institutional
Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.23% for Class A, 1.98% for Class C, 0.80% for Class R6,
1.15% for Administrator Class, and 0.90% for Institutional Class. 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 the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included,
returns for the Class R6 shares would be higher. |
4 |
The
Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell
3000® Index, which represents approximately 8% of the total market capitalization of the Russell
3000® Index. 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). Consult the Fund’s prospectus for additional information on these and other risks.
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Small Cap Fund
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
LivaNova
plc |
2.31
|
Ashland
Global Holdings Incorporated |
2.25
|
Atkore
Incorporated |
2.24
|
Masonite
International Corporation |
2.22
|
Stericycle
Incorporated |
1.96
|
Reinsurance
Group of America Incorporated |
1.96
|
Armstrong
World Industries Incorporated |
1.86
|
Integer
Holdings Corporation |
1.83
|
SPX
Technologies Incorporated |
1.77
|
HealthEquity
Incorporated |
1.66
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Small Cap Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
800.19 |
$
5.46 |
1.21%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.00
|
$
6.12 |
1.21%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
796.92 |
$
8.92 |
1.98%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,015.14
|
$10.00
|
1.98%
|
Class
R6 |
|
|
|
|
Actual
|
$1,000.00
|
$
801.70 |
$
3.61 |
0.80%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.06
|
$
4.05 |
0.80%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
800.63 |
$
5.19 |
1.15%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.30
|
$
5.82 |
1.15%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
801.59 |
$
4.06 |
0.90%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.56
|
$
4.56 |
0.90%
|
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 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Small Cap Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 95.71% |
|
|
|
|
|
Communication
services: 1.68% |
|
|
|
|
|
Interactive
media & services: 1.68% |
|
|
|
|
|
Bumble
Incorporated Class A † |
|
|
|
15,537
|
$
333,890 |
Eventbrite
Incorporated Class A † |
|
|
|
49,064
|
298,309
|
|
|
|
|
|
632,199
|
Consumer
discretionary: 8.51% |
|
|
|
|
|
Auto
components: 1.71% |
|
|
|
|
|
Dana
Incorporated |
|
|
|
29,034
|
331,859
|
Gentherm
Incorporated † |
|
|
|
6,187
|
307,680
|
|
|
|
|
|
639,539
|
Diversified
consumer services: 1.03% |
|
|
|
|
|
Service
Corporation International |
|
|
|
6,708
|
387,320
|
Hotels,
restaurants & leisure: 1.61% |
|
|
|
|
|
Jack
In The Box Incorporated |
|
|
|
2,931
|
217,099
|
Planet
Fitness Incorporated Class A † |
|
|
|
6,730
|
388,052
|
|
|
|
|
|
605,151
|
Internet
& direct marketing retail: 1.28% |
|
|
|
|
|
Revolve
Group Incorporated † |
|
|
|
19,075
|
413,737
|
The
RealReal Incorporated † |
|
|
|
45,361
|
68,042
|
|
|
|
|
|
481,779
|
Specialty
retail: 2.88% |
|
|
|
|
|
Leslie's
Incorporated † |
|
|
|
31,221
|
459,261
|
National
Vision Holdings Incorporated † |
|
|
|
19,049
|
621,950
|
|
|
|
|
|
1,081,211
|
Consumer
staples: 5.19% |
|
|
|
|
|
Food
products: 3.38% |
|
|
|
|
|
Nomad
Foods Limited † |
|
|
|
36,023
|
511,527
|
The
Simply Good Foods Company † |
|
|
|
15,701
|
502,275
|
TreeHouse
Foods Incorporated † |
|
|
|
6,028
|
255,708
|
|
|
|
|
|
1,269,510
|
Personal
products: 1.81% |
|
|
|
|
|
e.l.f.
Beauty Incorporated † |
|
|
|
10,833
|
407,537
|
The
Honest Company Incorporated † |
|
|
|
77,510
|
271,285
|
|
|
|
|
|
678,822
|
Financials: 12.93%
|
|
|
|
|
|
Banks:
6.93% |
|
|
|
|
|
Ameris
Bancorp |
|
|
|
10,222
|
457,026
|
Pinnacle
Financial Partners Incorporated |
|
|
|
6,376
|
517,094
|
United
Community Bank |
|
|
|
10,977
|
363,339
|
Veritex
Holdings Incorporated |
|
|
|
14,991
|
398,611
|
The accompanying notes are an integral part of these financial
statements.
Allspring Small Cap Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Banks
(continued) |
|
|
|
|
|
Webster
Financial Corporation |
|
|
|
13,678
|
$
618,246 |
Wintrust
Financial Corporation |
|
|
|
3,057
|
249,298
|
|
|
|
|
|
2,603,614
|
Capital
markets: 0.90% |
|
|
|
|
|
Raymond
James Financial Incorporated |
|
|
|
3,425
|
338,459
|
Insurance:
3.46% |
|
|
|
|
|
Axis
Capital Holdings Limited |
|
|
|
11,480
|
564,242
|
Reinsurance
Group of America Incorporated |
|
|
|
5,846
|
735,485
|
|
|
|
|
|
1,299,727
|
Thrifts
& mortgage finance: 1.64% |
|
|
|
|
|
Essent
Group Limited |
|
|
|
17,668
|
616,083
|
Health
care: 20.04% |
|
|
|
|
|
Biotechnology:
2.83% |
|
|
|
|
|
Agios
Pharmaceuticals Incorporated † |
|
|
|
8,219
|
232,433
|
Atara
Biotherapeutics Incorporated † |
|
|
|
9,820
|
37,120
|
Coherus
Biosciences Incorporated † |
|
|
|
8,994
|
86,432
|
Insmed
Incorporated † |
|
|
|
11,453
|
246,698
|
Mirati
Therapeutics Incorporated † |
|
|
|
790
|
55,174
|
Neurocrine
Biosciences Incorporated † |
|
|
|
1,686
|
179,070
|
Sage
Therapeutics Incorporated † |
|
|
|
3,717
|
145,558
|
Zymeworks
Incorporated † |
|
|
|
12,980
|
79,827
|
|
|
|
|
|
1,062,312
|
Health
care equipment & supplies: 11.49% |
|
|
|
|
|
AngioDynamics
Incorporated † |
|
|
|
26,958
|
551,561
|
Cardiovascular
Systems Incorporated † |
|
|
|
26,357
|
365,308
|
Haemonetics
Corporation † |
|
|
|
7,633
|
565,071
|
Integer
Holdings Corporation † |
|
|
|
11,036
|
686,770
|
LivaNova
plc † |
|
|
|
17,123
|
869,333
|
Neuronetics
Incorporated † |
|
|
|
76,793
|
244,202
|
Teleflex
Incorporated |
|
|
|
2,391
|
481,691
|
ViewRay
Incorporated † |
|
|
|
151,414
|
551,147
|
|
|
|
|
|
4,315,083
|
Health
care providers & services: 1.66% |
|
|
|
|
|
HealthEquity
Incorporated † |
|
|
|
9,306
|
625,084
|
Health
care technology: 0.60% |
|
|
|
|
|
Schrodinger
Incorporated † |
|
|
|
8,957
|
223,746
|
Life
sciences tools & services: 3.46% |
|
|
|
|
|
Azenta
Incorporated |
|
|
|
11,133
|
477,160
|
Bruker
Corporation |
|
|
|
10,687
|
567,052
|
Codexis
Incorporated † |
|
|
|
24,647
|
149,361
|
Sotera
Health Company † |
|
|
|
15,400
|
105,028
|
|
|
|
|
|
1,298,601
|
Industrials: 18.65%
|
|
|
|
|
|
Building
products: 5.84% |
|
|
|
|
|
Armstrong
World Industries Incorporated |
|
|
|
8,805
|
697,620
|
Masonite
International Corporation † |
|
|
|
11,708
|
834,663
|
The accompanying notes are an integral part of these financial
statements.
10 | Allspring Small Cap Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Building
products (continued) |
|
|
|
|
|
Tecnoglass
Incorporated « |
|
|
|
13,611
|
$
285,695 |
The
AZEK Company Incorporated † |
|
|
|
22,558
|
374,914
|
|
|
|
|
|
2,192,892
|
Commercial
services & supplies: 2.81% |
|
|
|
|
|
Steelcase
Incorporated Class A |
|
|
|
48,614
|
316,963
|
Stericycle
Incorporated † |
|
|
|
17,513
|
737,472
|
|
|
|
|
|
1,054,435
|
Construction
& engineering: 1.36% |
|
|
|
|
|
APi
Group Corporation † |
|
|
|
38,584
|
512,009
|
Electrical
equipment: 3.33% |
|
|
|
|
|
Atkore
Incorporated † |
|
|
|
10,801
|
840,426
|
Regal
Rexnord Corporation |
|
|
|
2,933
|
411,676
|
|
|
|
|
|
1,252,102
|
Machinery:
1.77% |
|
|
|
|
|
SPX
Technologies Incorporated † |
|
|
|
12,042
|
664,959
|
Road
& rail: 1.05% |
|
|
|
|
|
Ryder
System Incorporated |
|
|
|
5,224
|
394,360
|
Trading
companies & distributors: 2.49% |
|
|
|
|
|
Air
Lease Corporation |
|
|
|
18,537
|
574,832
|
Herc
Holdings Incorporated |
|
|
|
3,454
|
358,802
|
|
|
|
|
|
933,634
|
Information
technology: 13.71% |
|
|
|
|
|
Communications
equipment: 0.41% |
|
|
|
|
|
Infinera
Corporation † |
|
|
|
31,630
|
153,089
|
Electronic
equipment, instruments & components: 1.49% |
|
|
|
|
|
Littelfuse
Incorporated |
|
|
|
2,821
|
560,504
|
IT
services: 1.57% |
|
|
|
|
|
WNS
Holdings Limited ADR † |
|
|
|
7,206
|
589,739
|
Semiconductors
& semiconductor equipment: 1.17% |
|
|
|
|
|
Macom
Technology Solutions Holdings Incorporated † |
|
|
|
8,473
|
438,817
|
Software:
9.07% |
|
|
|
|
|
8x8
Incorporated † |
|
|
|
24,642
|
85,015
|
Benefitfocus
Incorporated † |
|
|
|
24,120
|
153,162
|
CommVault
Systems Incorporated † |
|
|
|
8,565
|
454,288
|
Instructure
Holdings Incorporated †« |
|
|
|
26,498
|
590,375
|
New
Relic Incorporated † |
|
|
|
5,268
|
302,278
|
Pagerduty
Incorporated † |
|
|
|
23,250
|
536,378
|
Q2
Holdings Incorporated † |
|
|
|
11,793
|
379,735
|
Riskified
Limited Class A †« |
|
|
|
14,558
|
57,359
|
SPS
Commerce Incorporated † |
|
|
|
3,709
|
460,769
|
WalkMe
Limited †« |
|
|
|
45,824
|
389,504
|
|
|
|
|
|
3,408,863
|
The accompanying notes are an integral part of these financial
statements.
Allspring Small Cap Fund | 11
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Materials: 9.84%
|
|
|
|
|
|
Chemicals:
6.65% |
|
|
|
|
|
Ashland
Global Holdings Incorporated |
|
|
|
8,917
|
$
846,847 |
Olin
Corporation |
|
|
|
13,621
|
584,068
|
Quaker
Chemical Corporation |
|
|
|
3,990
|
576,076
|
Westlake
Chemical Corporation |
|
|
|
5,621
|
488,352
|
|
|
|
|
|
2,495,343
|
Containers
& packaging: 1.55% |
|
|
|
|
|
Silgan
Holdings Incorporated |
|
|
|
13,879
|
583,473
|
Metals
& mining: 1.64% |
|
|
|
|
|
Reliance
Steel & Aluminum Company |
|
|
|
3,535
|
616,539
|
Real
estate: 5.16% |
|
|
|
|
|
Equity
REITs: 5.16% |
|
|
|
|
|
American
Homes 4 Rent Class A |
|
|
|
18,583
|
609,708
|
Apartment
Income REIT Corporation |
|
|
|
11,954
|
461,663
|
Four
Corners Property Trust Incorporated |
|
|
|
17,609
|
425,962
|
Terreno
Realty Corporation |
|
|
|
8,287
|
439,128
|
|
|
|
|
|
1,936,461
|
Total
Common stocks (Cost $39,117,401) |
|
|
|
|
35,945,459
|
|
|
|
|
|
|
Investment
companies: 1.34% |
|
|
|
|
|
Exchange-traded
funds: 1.34% |
|
|
|
|
|
SPDR
S&P Biotech ETF « |
|
|
|
6,334
|
502,413
|
Total
Investment companies (Cost $834,809) |
|
|
|
|
502,413
|
|
|
Yield
|
|
|
|
Short-term
investments: 7.78% |
|
|
|
|
|
Investment
companies: 7.78% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
1,389,201
|
1,389,201
|
Securities
Lending Cash Investments LLC ♠∩∞ |
|
3.08
|
|
1,533,775
|
1,533,775
|
Total
Short-term investments (Cost $2,922,976) |
|
|
|
|
2,922,976
|
Total
investments in securities (Cost $42,875,186) |
104.83%
|
|
|
|
39,370,848
|
Other
assets and liabilities, net |
(4.83)
|
|
|
|
(1,812,392)
|
Total
net assets |
100.00%
|
|
|
|
$37,558,456
|
†
|
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 |
The accompanying notes are an integral part of these financial
statements.
12 | Allspring Small Cap Fund
Portfolio of
investments—September 30, 2022 (unaudited)
Investments in
affiliates
An affiliated investment is an investment in which the
Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of
the period were as follows:
|
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 |
$
594,684 |
$4,846,113
|
$(4,051,596)
|
$0
|
|
$0
|
|
$
1,389,201 |
1,389,201
|
$
5,954 |
Securities
Lending Cash Investments LLC |
1,552,990
|
6,160,465
|
(6,179,680)
|
0
|
|
0
|
|
1,533,775
|
1,533,775
|
14,123
# |
|
|
|
|
$0
|
|
$0
|
|
$2,922,976
|
|
$20,077
|
# |
Amount
shown represents income before fees and rebates. |
The accompanying notes are an integral part of these
financial statements.
Allspring Small Cap Fund | 13
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities (including $1,494,049 of securities loaned), at value (cost
$39,952,210)
|
$
36,447,872 |
Investments in affiliated securities, at value (cost
$2,922,976)
|
2,922,976
|
Receivable for investments
sold
|
453,310
|
Receivable for
dividends
|
27,702
|
Receivable for Fund shares
sold
|
22,357
|
Receivable for securities lending income,
net
|
746
|
Prepaid expenses and other
assets
|
80,099
|
Total
assets
|
39,955,062
|
Liabilities
|
|
Payable upon receipt of securities
loaned
|
1,533,775
|
Payable for investments
purchased
|
771,482
|
Payable for Fund shares
redeemed
|
27,393
|
Management fee
payable
|
11,152
|
Administration fees
payable
|
6,855
|
Trustees’ fees and expenses
payable
|
3,342
|
Distribution fee
payable
|
22
|
Accrued expenses and other
liabilities
|
42,585
|
Total
liabilities
|
2,396,606
|
Total net
assets
|
$37,558,456
|
Net
assets consist of |
|
Paid-in
capital
|
$
34,937,446 |
Total distributable
earnings
|
2,621,010
|
Total net
assets
|
$37,558,456
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
31,984,026 |
Shares outstanding – Class
A1
|
1,288,149
|
Net asset value per share – Class
A |
$24.83
|
Maximum offering price per share – Class
A2
|
$26.34
|
Net assets – Class
C |
$
29,983 |
Shares outstanding – Class
C1
|
1,382
|
Net asset value per share – Class
C |
$21.70
|
Net assets – Class
R6
|
$
813,293 |
Shares outstanding – Class
R61
|
30,855
|
Net asset value per share – Class
R6
|
$26.36
|
Net assets – Administrator
Class
|
$
325,293 |
Shares outstanding – Administrator
Class1
|
12,721
|
Net asset value per share – Administrator
Class
|
$25.57
|
Net assets – Institutional
Class
|
$
4,405,861 |
Shares outstanding – Institutional
Class1
|
168,334
|
Net
asset value per share – Institutional
Class
|
$26.17
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
14 | Allspring Small Cap Fund
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends
|
$
183,045 |
Income from affiliated
securities
|
10,752
|
Total investment
income
|
193,797
|
Expenses
|
|
Management
fee
|
183,814
|
Administration
fees |
|
Class
A |
38,867
|
Class
C |
45
|
Class
R6
|
142
|
Administrator
Class
|
195
|
Institutional
Class
|
3,215
|
Shareholder
servicing fees |
|
Class
A |
46,270
|
Class
C |
53
|
Administrator
Class
|
373
|
Distribution
fee |
|
Class
C |
159
|
Custody and accounting
fees
|
7,976
|
Professional
fees
|
24,210
|
Registration
fees
|
27,814
|
Shareholder report
expenses
|
19,507
|
Trustees’ fees and
expenses
|
11,176
|
Other fees and
expenses
|
2,030
|
Total
expenses
|
365,846
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(104,067)
|
Class
A |
(10,180)
|
Class
C |
(1)
|
Class
R6
|
(32)
|
Administrator
Class
|
(11)
|
Institutional
Class
|
(196)
|
Net
expenses
|
251,359
|
Net investment
loss
|
(57,562)
|
Realized
and unrealized gains (losses) on investments |
|
Net realized gains on
investments
|
9,807
|
Net change in unrealized gains (losses) on
investments
|
(9,536,160)
|
Net realized and unrealized gains (losses) on
investments
|
(9,526,353)
|
Net decrease in net assets resulting from
operations
|
$(9,583,915)
|
The accompanying notes are an integral part of these
financial statements.
Allspring Small Cap Fund | 15
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
loss
|
|
$
(57,562) |
|
$
(273,654) |
Net realized gains on
investments
|
|
9,807
|
|
8,162,825
|
Net change in unrealized gains (losses) on
investments
|
|
(9,536,160)
|
|
(7,318,854)
|
Net increase (decrease) in net assets resulting from
operations
|
|
(9,583,915)
|
|
570,317
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
0
|
|
(8,202,400)
|
Class
C |
|
0
|
|
(13,229)
|
Class
R6
|
|
0
|
|
(166,835)
|
Administrator
Class
|
|
0
|
|
(76,156)
|
Institutional
Class
|
|
0
|
|
(1,065,163)
|
Total distributions to
shareholders
|
|
0
|
|
(9,523,783)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
15,669
|
425,047
|
63,622
|
2,219,863
|
Class
C |
0
|
0
|
2,679
|
92,317
|
Class
R6
|
5,650
|
159,678
|
7,280
|
281,475
|
Administrator
Class
|
2,720
|
71,140
|
2,330
|
86,569
|
Institutional
Class
|
6,744
|
204,414
|
8,764
|
343,421
|
|
|
860,279
|
|
3,023,645
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
0
|
0
|
241,326
|
7,944,449
|
Class
C |
0
|
0
|
457
|
13,229
|
Class
R6
|
0
|
0
|
4,790
|
166,835
|
Administrator
Class
|
0
|
0
|
1,824
|
61,820
|
Institutional
Class
|
0
|
0
|
28,785
|
996,275
|
|
|
0
|
|
9,182,608
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(104,416)
|
(2,963,321)
|
(161,278)
|
(5,903,305)
|
Class
C |
(826)
|
(20,264)
|
(4,193)
|
(145,645)
|
Class
R6
|
(4,271)
|
(124,500)
|
(6,311)
|
(255,377)
|
Administrator
Class
|
(280)
|
(7,807)
|
(5,921)
|
(211,605)
|
Institutional
Class
|
(6,666)
|
(187,425)
|
(210,359)
|
(8,645,948)
|
|
|
(3,303,317)
|
|
(15,161,880)
|
Net decrease in net assets resulting from capital share
transactions
|
|
(2,443,038)
|
|
(2,955,627)
|
Total decrease in net
assets
|
|
(12,026,953)
|
|
(11,909,093)
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
49,585,409
|
|
61,494,502
|
End of
period
|
|
$
37,558,456 |
|
$
49,585,409 |
The accompanying notes are an integral part of these
financial statements.
16 | Allspring Small Cap Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$31.03
|
$37.77
|
$19.77
|
$30.27
|
$31.46
|
$28.92
|
Net investment income
(loss)
|
(0.04)
1 |
(0.20)
1 |
(0.07)
1 |
0.02
1 |
(0.04)
1 |
(0.08)
1 |
Net realized and unrealized gains (losses) on
investments
|
(6.16)
|
0.52
|
18.10
|
(8.43)
|
(1.15)
|
2.62
|
Total from investment
operations
|
(6.20)
|
0.32
|
18.03
|
(8.41)
|
(1.19)
|
2.54
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
0.00
|
(0.03)
|
0.00
|
0.00
|
0.00
|
Net realized
gains
|
0.00
|
(7.06)
|
0.00
|
(2.09)
|
0.00
|
0.00
|
Total distributions to
shareholders
|
0.00
|
(7.06)
|
(0.03)
|
(2.09)
|
0.00
|
0.00
|
Net asset value, end of
period
|
$24.83
|
$31.03
|
$37.77
|
$19.77
|
$30.27
|
$31.46
|
Total
return2
|
(19.98)%
|
(0.22)%
|
91.20%
|
(30.24)%
|
(3.78)%
|
8.78%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.74%
|
1.67%
|
1.68%
|
1.60%
|
1.54%
|
1.54%
|
Net
expenses
|
1.21%
|
1.21%
|
1.32%
|
1.33%
|
1.35%
|
1.35%
|
Net investment income
(loss)
|
(0.31)%
|
(0.54)%
|
(0.24)%
|
0.05%
|
(0.11)%
|
(0.26)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
12%
|
37%
|
55%
|
41%
|
34%
|
27%
|
Net assets, end of period (000s
omitted)
|
$31,984
|
$42,732
|
$46,580
|
$27,115
|
$44,028
|
$50,993
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Small Cap Fund | 17
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$27.22
|
$34.21
|
$18.03
|
$27.98
|
$29.30
|
$27.14
|
Net investment
loss
|
(0.13)
1 |
(0.43)
1 |
(0.23)
1 |
(0.20)
1 |
(0.25)
1 |
(0.28)
1 |
Net realized and unrealized gains (losses) on
investments
|
(5.39)
|
0.50
|
16.41
|
(7.66)
|
(1.07)
|
2.44
|
Total from investment
operations
|
(5.52)
|
0.07
|
16.18
|
(7.86)
|
(1.32)
|
2.16
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(7.06)
|
0.00
|
(2.09)
|
0.00
|
0.00
|
Net asset value, end of
period
|
$21.70
|
$27.22
|
$34.21
|
$18.03
|
$27.98
|
$29.30
|
Total
return2
|
(20.31)%
|
(1.02)%
|
89.74%
|
(30.76)%
|
(4.51)%
|
7.96%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
2.49%
|
2.40%
|
2.44%
|
2.34%
|
2.29%
|
2.29%
|
Net
expenses
|
1.98%
|
1.98%
|
2.09%
|
2.10%
|
2.10%
|
2.10%
|
Net investment
loss
|
(1.09)%
|
(1.27)%
|
(0.94)%
|
(0.73)%
|
(0.85)%
|
(1.02)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
12%
|
37%
|
55%
|
41%
|
34%
|
27%
|
Net assets, end of period (000s
omitted)
|
$30
|
$60
|
$112
|
$190
|
$526
|
$840
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Small Cap Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
R6 |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
1 |
Net asset value, beginning of
period
|
$32.88
|
$39.46
|
$25.43
|
Net investment income
(loss)
|
0.02
2 |
(0.05)
2 |
0.03
2 |
Net realized and unrealized gains (losses) on
investments
|
(6.54)
|
0.53
|
14.09
|
Total from investment
operations
|
(6.52)
|
0.48
|
14.12
|
Distributions
to shareholders from |
|
|
|
Net investment
income
|
0.00
|
0.00
|
(0.09)
|
Net realized
gains
|
0.00
|
(7.06)
|
0.00
|
Total distributions to
shareholders
|
0.00
|
(7.06)
|
(0.09)
|
Net asset value, end of
period
|
$26.36
|
$32.88
|
$39.46
|
Total
return3
|
(19.83)%
|
0.23%
|
55.58%
|
Ratios
to average net assets (annualized) |
|
|
|
Gross
expenses
|
1.31%
|
1.24%
|
1.23%
|
Net
expenses
|
0.80%
|
0.80%
|
0.88%
|
Net investment income
(loss)
|
0.10%
|
(0.13)%
|
0.09%
|
Supplemental
data |
|
|
|
Portfolio turnover
rate
|
12%
|
37%
|
55%
|
Net assets, end of period (000s
omitted)
|
$813
|
$969
|
$936
|
1 |
For the
period from May 29, 2020 (commencement of class operations) to March 31, 2021 |
2 |
Calculated
based upon average shares outstanding |
3 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Small Cap Fund | 19
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$31.95
|
$38.67
|
$20.23
|
$30.89
|
$32.06
|
$29.43
|
Net investment income
(loss)
|
(0.03)
1 |
(0.17)
1 |
(0.01)
1 |
0.05
1 |
0.01
1 |
(0.03)
1 |
Net realized and unrealized gains (losses) on
investments
|
(6.35)
|
0.51
|
18.51
|
(8.62)
|
(1.18)
|
2.66
|
Total from investment
operations
|
(6.38)
|
0.34
|
18.50
|
(8.57)
|
(1.17)
|
2.63
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
0.00
|
(0.06)
|
0.00
|
0.00
|
0.00
|
Net realized
gains
|
0.00
|
(7.06)
|
0.00
|
(2.09)
|
0.00
|
0.00
|
Total distributions to
shareholders
|
0.00
|
(7.06)
|
(0.06)
|
(2.09)
|
0.00
|
0.00
|
Net asset value, end of
period
|
$25.57
|
$31.95
|
$38.67
|
$20.23
|
$30.89
|
$32.06
|
Total
return2
|
(19.94)%
|
(0.16)%
|
91.48%
|
(30.15)%
|
(3.65)%
|
8.94%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.66%
|
1.59%
|
1.61%
|
1.51%
|
1.46%
|
1.46%
|
Net
expenses
|
1.15%
|
1.15%
|
1.20%
|
1.20%
|
1.20%
|
1.20%
|
Net investment income
(loss)
|
(0.23)%
|
(0.46)%
|
(0.02)%
|
0.17%
|
0.05%
|
(0.10)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
12%
|
37%
|
55%
|
41%
|
34%
|
27%
|
Net assets, end of period (000s
omitted)
|
$325
|
$329
|
$466
|
$450
|
$1,165
|
$1,347
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
20 | Allspring Small Cap Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$32.66
|
$39.29
|
$20.58
|
$31.33
|
$32.45
|
$29.73
|
Net investment income
(loss)
|
(0.00)
1,2 |
(0.11)
1 |
0.02
1 |
0.12
1 |
0.08
1 |
0.03
1 |
Net realized and unrealized gains (losses) on
investments
|
(6.49)
|
0.54
|
18.87
|
(8.78)
|
(1.20)
|
2.69
|
Total from investment
operations
|
(6.49)
|
0.43
|
18.89
|
(8.66)
|
(1.12)
|
2.72
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
0.00
|
(0.18)
|
(0.00)
3 |
0.00
|
0.00
|
Net realized
gains
|
0.00
|
(7.06)
|
0.00
|
(2.09)
|
0.00
|
0.00
|
Total distributions to
shareholders
|
0.00
|
(7.06)
|
(0.18)
|
(2.09)
|
0.00
|
0.00
|
Net asset value, end of
period
|
$26.17
|
$32.66
|
$39.29
|
$20.58
|
$31.33
|
$32.45
|
Total
return4
|
(19.84)%
|
0.09%
|
91.87%
|
(30.00)%
|
(3.45)%
|
9.15%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.41%
|
1.33%
|
1.35%
|
1.27%
|
1.21%
|
1.21%
|
Net
expenses
|
0.90%
|
0.90%
|
0.98%
|
1.00%
|
1.00%
|
1.00%
|
Net investment income
(loss)
|
(0.00)
% |
(0.28)%
|
0.08%
|
0.38%
|
0.24%
|
0.08%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
12%
|
37%
|
55%
|
41%
|
34%
|
27%
|
Net assets, end of period (000s
omitted)
|
$4,406
|
$5,496
|
$13,401
|
$11,305
|
$21,398
|
$28,032
|
1 |
Calculated
based upon average shares outstanding |
2 |
Amount
is more than $(0.005) |
3 |
Amount
is less than $0.005. |
4 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Small Cap Fund | 21
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Small Cap Fund
(the "Fund") which is a diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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 the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds
Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any
actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio
of investments.
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.
Income dividends and capital gain distributions from investment
companies are recorded on the ex-dividend date. Capital gain distributions from investment companies are treated as realized gains.
22 | Allspring Small Cap Fund
Notes to financial statements
(unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income and any net realized
gains are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. 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 September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $42,861,556 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$
5,438,820 |
Gross
unrealized losses |
(8,929,528)
|
Net
unrealized losses |
$(3,490,708)
|
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on
investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
Allspring Small Cap Fund | 23
Notes to financial statements
(unaudited)
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
632,199 |
$0
|
$0
|
$
632,199 |
Consumer
discretionary |
3,195,000
|
0
|
0
|
3,195,000
|
Consumer
staples |
1,948,332
|
0
|
0
|
1,948,332
|
Financials
|
4,857,883
|
0
|
0
|
4,857,883
|
Health
care |
7,524,826
|
0
|
0
|
7,524,826
|
Industrials
|
7,004,391
|
0
|
0
|
7,004,391
|
Information
technology |
5,151,012
|
0
|
0
|
5,151,012
|
Materials
|
3,695,355
|
0
|
0
|
3,695,355
|
Real
estate |
1,936,461
|
0
|
0
|
1,936,461
|
Investment
companies |
502,413
|
0
|
0
|
502,413
|
Short-term
investments |
|
|
|
|
Investment
companies |
2,922,976
|
0
|
0
|
2,922,976
|
Total
assets |
$39,370,848
|
$0
|
$0
|
$39,370,848
|
Additional sector, industry or
geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended September 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 |
0.850%
|
Next
$500 million |
0.825
|
Next
$1 billion |
0.800
|
Next
$1 billion |
0.775
|
Next
$1 billion |
0.750
|
Next
$1 billion |
0.730
|
Next
$5 billion |
0.720
|
Over
$10 billion |
0.710
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.85% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC ("Allspring Investments"), an affiliate of Allspring Funds Management and a
wholly owned subsidiary of Allspring Global Investments
24 | Allspring Small Cap Fund
Notes to financial statements
(unaudited)
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.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Class
R6 |
0.03
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 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 September 30, 2022, the contractual expense caps are as follows:
|
Expense
ratio caps |
Class
A |
1.23%
|
Class
C |
1.98
|
Class
R6 |
0.80
|
Administrator
Class |
1.15
|
Institutional
Class |
0.90
|
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule
12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.75%
of the average daily net assets of Class C shares.
In
addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also
entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $21 from the sale of Class A shares. No contingent deferred sales charges
were incurred by Class A and Class C shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
Allspring Small Cap Fund | 25
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 U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2022 were $5,019,532 and $8,017,269, 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 September 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 |
Bank
of America Securities Incorporated |
$551,346
|
$(551,346)
|
$0
|
JPMorgan
Securities LLC |
167,505
|
(167,505)
|
0
|
National
Financial Services LLC |
270,255
|
(270,255)
|
0
|
SG
Americas Securities LLC |
473,160
|
(473,160)
|
0
|
UBS
Securities LLC |
31,783
|
(31,783)
|
0
|
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 30, 2022, there were no
borrowings by the Fund under the agreement.
8.
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.
26 | Allspring Small Cap Fund
Notes to financial statements
(unaudited)
9. 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 Small Cap Fund | 27
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 1-800-222-8222, 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.
28 | Allspring Small Cap 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 124 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 Small Cap Fund | 29
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
30 | Allspring Small Cap 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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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 Small Cap Fund | 31
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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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.
32 | Allspring Small Cap Fund
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00367 11-22
SA242/SAR242 09-22
Semi-Annual Report
September 30, 2022
Allspring
Special Small Cap Value Fund
The views expressed and any forward-looking statements are as
of September 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 Special Small Cap Value
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 Special Small Cap Value Fund for the six-month period that ended September 30, 2022. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the
worst as the global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling
substantially for the six-month period.
Earlier tailwinds provided by global
stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect of more, plus the
global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Special Small Cap Value
Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Special Small Cap Value
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Special Small Cap Value
Fund
This
page is intentionally left blank.
Performance highlights
(unaudited)
This Fund is currently closed to most new investors.*
Investment
objective |
The Fund seeks long-term
capital appreciation. |
Manager
|
Allspring Funds Management,
LLC |
Subadviser
|
Allspring Global Investments,
LLC |
Portfolio
managers |
Brian
Martin, CFA®‡, James M. Tringas, CFA®‡, Bryant VanCronkhite, CFA®‡ |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (ESPAX) |
5-7-1993
|
-22.38
|
1.76
|
8.18
|
|
-17.64
|
2.97
|
8.82
|
|
1.24
|
1.24
|
Class
C (ESPCX) |
12-12-2000
|
-19.27
|
2.22
|
8.18
|
|
-18.27
|
2.22
|
8.18
|
|
1.99
|
1.99
|
Class
R (ESPHX)3 |
9-30-2015
|
–
|
–
|
–
|
|
-17.86
|
2.71
|
8.56
|
|
1.49
|
1.49
|
Class
R6 (ESPRX)4 |
10-31-2014
|
–
|
–
|
–
|
|
-17.29
|
3.42
|
9.28
|
|
0.81
|
0.81
|
Administrator
Class (ESPIX) |
7-23-1996
|
–
|
–
|
–
|
|
-17.58
|
3.06
|
8.98
|
|
1.16
|
1.16
|
Institutional
Class (ESPNX) |
7-30-2010
|
–
|
–
|
–
|
|
-17.37
|
3.33
|
9.22
|
|
0.91
|
0.91
|
Russell
2000® Value Index5 |
–
|
–
|
–
|
–
|
|
-17.69
|
2.87
|
7.94
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Class R, Class R6, Administrator Class and
Institutional Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.31% for Class A, 2.06% for Class C, 1.56% for Class R,
0.89% for Class R6, 1.20% for Administrator Class, and 0.94% for Institutional Class. 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 the Class R shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Class R shares. |
4 |
Historical
performance shown for the Class R6 shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included,
returns for the Class R6 shares would be higher. |
5 |
The
Russell 2000® Value Index measures the performance of those Russell 2000 companies with lower price/book ratios and lower 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.
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
* Please see the Fund’s current Statement of Additional
Information for further details.
6 | Allspring Special Small Cap Value
Fund
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
Mueller
Industries Incorporated |
4.07
|
Innospec
Incorporated |
3.25
|
Franklin
Electric Company Incorporated |
3.05
|
J
& J Snack Foods Corporation |
2.86
|
Eagle
Materials Incorporated |
2.64
|
UMB
Financial Corporation |
2.50
|
CSW
Industrials Incorporated |
2.25
|
Avient
Corporation |
2.10
|
Mativ
Holdings Inc |
1.77
|
Silgan
Holdings Incorporated |
1.59
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Special Small Cap Value
Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
804.21 |
$
5.70 |
1.26%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,018.75
|
$
6.38 |
1.26%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
801.05 |
$
9.03 |
2.00%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,015.04
|
$10.10
|
2.00%
|
Class
R |
|
|
|
|
Actual
|
$1,000.00
|
$
803.09 |
$
6.83 |
1.51%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,017.50
|
$
7.64 |
1.51%
|
Class
R6 |
|
|
|
|
Actual
|
$1,000.00
|
$
805.86 |
$
3.76 |
0.83%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.91
|
$
4.20 |
0.83%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
804.58 |
$
5.25 |
1.16%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.25
|
$
5.87 |
1.16%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
805.62 |
$
4.21 |
0.93%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.41
|
$
4.71 |
0.93%
|
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 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Special Small Cap Value
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 95.08% |
|
|
|
|
|
Communication
services: 0.47% |
|
|
|
|
|
Media:
0.47% |
|
|
|
|
|
DallasNews
Corporation Class A ♠ |
|
|
|
436,597
|
$
2,025,810 |
Thryv
Holdings Incorporated † |
|
|
|
860,400
|
19,642,932
|
|
|
|
|
|
21,668,742
|
Consumer
discretionary: 6.64% |
|
|
|
|
|
Auto
components: 0.54% |
|
|
|
|
|
Holley
Incorporated †« |
|
|
|
6,099,043
|
24,701,124
|
Hotels,
restaurants & leisure: 3.63% |
|
|
|
|
|
Denny’s
Corporation ♠† |
|
|
|
4,560,412
|
42,913,477
|
Dine
Brands Global Incorporated ♠ |
|
|
|
993,743
|
63,162,305
|
Jack
In The Box Incorporated |
|
|
|
815,800
|
60,426,306
|
|
|
|
|
|
166,502,088
|
Household
durables: 1.43% |
|
|
|
|
|
Helen
of Troy Limited † |
|
|
|
563,533
|
54,347,123
|
Tupperware
Brands Corporation ♠† |
|
|
|
1,751,837
|
11,474,532
|
|
|
|
|
|
65,821,655
|
Multiline
retail: 0.39% |
|
|
|
|
|
Franchise
Group Incorporated |
|
|
|
733,421
|
17,822,130
|
Textiles,
apparel & luxury goods: 0.65% |
|
|
|
|
|
Delta
Apparel Incorporated ♠† |
|
|
|
602,202
|
8,424,806
|
Steven
Madden Limited |
|
|
|
798,100
|
21,285,327
|
|
|
|
|
|
29,710,133
|
Consumer
staples: 8.34% |
|
|
|
|
|
Beverages:
0.84% |
|
|
|
|
|
Primo
Water Corporation |
|
|
|
3,078,389
|
38,633,782
|
Food
products: 4.38% |
|
|
|
|
|
J
& J Snack Foods Corporation ♠ |
|
|
|
1,015,608
|
131,490,768
|
Nomad
Foods Limited † |
|
|
|
3,325,728
|
47,225,338
|
Tootsie
Roll Industries Incorporated |
|
|
|
672,640
|
22,385,459
|
|
|
|
|
|
201,101,565
|
Household
products: 3.12% |
|
|
|
|
|
Central
Garden & Pet Company ♠† |
|
|
|
813,322
|
29,312,125
|
Central
Garden & Pet Company Class A † |
|
|
|
1,267,151
|
43,285,878
|
Spectrum
Brands Holdings Incorporated ##« |
|
|
|
1,803,094
|
70,374,759
|
|
|
|
|
|
142,972,762
|
Energy: 7.30%
|
|
|
|
|
|
Energy
equipment & services: 1.74% |
|
|
|
|
|
Forum
Energy Technologies Incorporated † |
|
|
|
172,344
|
3,660,587
|
Liberty
Oilfield Services Class A † |
|
|
|
1,584,371
|
20,089,824
|
Patterson-UTI
Energy Incorporated |
|
|
|
4,803,848
|
56,108,945
|
|
|
|
|
|
79,859,356
|
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Oil,
gas & consumable fuels: 5.56% |
|
|
|
|
|
Alto
Ingredients Incorporated † |
|
|
|
2,132,188
|
$
7,761,164 |
Berry
Corporation |
|
|
|
2,139,686
|
16,047,645
|
Callon
Petroleum Company †## |
|
|
|
534,930
|
18,727,899
|
Chord
Energy Corporation |
|
|
|
449,912
|
61,534,464
|
Magnolia
Oil & Gas Corporation Class A |
|
|
|
2,941,984
|
58,280,703
|
Nordic
American Tankers Limited « |
|
|
|
3,711,011
|
9,908,399
|
Northern
Oil and Gas Incorporated |
|
|
|
908,210
|
24,894,036
|
Southwestern
Energy Company †## |
|
|
|
9,482,980
|
58,035,838
|
|
|
|
|
|
255,190,148
|
Financials: 16.75%
|
|
|
|
|
|
Banks:
7.27% |
|
|
|
|
|
Associated
Banc Corporation |
|
|
|
1,955,756
|
39,271,580
|
CVB
Financial Corporation |
|
|
|
832,774
|
21,085,838
|
First
Hawaiian Incorporated |
|
|
|
1,022,658
|
25,188,067
|
Hancock
Whitney Corporation |
|
|
|
1,038,240
|
47,561,774
|
Renasant
Corporation |
|
|
|
1,132,774
|
35,433,171
|
South
State Corporation |
|
|
|
637,618
|
50,448,336
|
UMB
Financial Corporation |
|
|
|
1,360,980
|
114,717,004
|
|
|
|
|
|
333,705,770
|
Capital
markets: 1.16% |
|
|
|
|
|
Apollo
Investment Corporation |
|
|
|
1,873,186
|
19,143,961
|
Capitol
Investment Corporation V |
|
|
|
1,250,000
|
549,250
|
Glassbridge
Enterprises Incorporated ♠†« |
|
|
|
1,527
|
38,175
|
New
Mountain Finance Corporation |
|
|
|
2,515,550
|
29,004,292
|
Pershing
Square Escrow Shares ♦† |
|
|
|
1,415,995
|
0
|
Westwood
Holdings Group Incorporated ♠ |
|
|
|
446,683
|
4,301,557
|
|
|
|
|
|
53,037,235
|
Diversified
financial services: 0.75% |
|
|
|
|
|
Jackson
Financial Incorporation Class A |
|
|
|
1,247,661
|
34,622,593
|
Insurance:
4.95% |
|
|
|
|
|
CNO
Financial Group Incorporated |
|
|
|
747,092
|
13,425,243
|
Enstar
Group Limited † |
|
|
|
308,502
|
52,318,854
|
National
Western Life Group Class A |
|
|
|
68,833
|
11,756,676
|
ProAssurance
Corporation |
|
|
|
1,230,100
|
23,999,251
|
Stewart
Information Services Corporation |
|
|
|
1,316,802
|
57,465,239
|
The
Hanover Insurance Group Incorporated |
|
|
|
530,177
|
67,936,881
|
|
|
|
|
|
226,902,144
|
Mortgage
REITs: 2.62% |
|
|
|
|
|
AGNC
Investment Corporation |
|
|
|
3,643,200
|
30,675,744
|
Apollo
Commercial Real Estate Finance Incorporated |
|
|
|
2,404,190
|
19,954,777
|
New
York Mortgage Trust Incorporated |
|
|
|
11,637,106
|
27,230,828
|
Two
Harbors Investment Corporation |
|
|
|
12,763,196
|
42,373,811
|
|
|
|
|
|
120,235,160
|
The accompanying notes are an integral part of these financial
statements.
10 | Allspring Special Small Cap Value
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Health
care: 4.87% |
|
|
|
|
|
Health
care equipment & supplies: 0.88% |
|
|
|
|
|
Enovis
Corporation |
|
|
|
113,800
|
$
5,242,766 |
Varex
Imaging Corporation † |
|
|
|
1,675,689
|
35,424,065
|
|
|
|
|
|
40,666,831
|
Health
care providers & services: 1.88% |
|
|
|
|
|
Owens
& Minor Incorporated |
|
|
|
1,732,034
|
41,742,019
|
Patterson
Companies Incorporated |
|
|
|
1,127,665
|
27,086,513
|
Premier
Incorporated Class A |
|
|
|
515,737
|
17,504,114
|
|
|
|
|
|
86,332,646
|
Life
sciences tools & services: 0.74% |
|
|
|
|
|
Azenta
Incorporated |
|
|
|
790,241
|
33,869,729
|
Pharmaceuticals:
1.37% |
|
|
|
|
|
Perrigo
Company plc |
|
|
|
752,251
|
26,825,271
|
Prestige
Consumer Healthcare Incorporated † |
|
|
|
720,526
|
35,903,811
|
|
|
|
|
|
62,729,082
|
Industrials: 29.16%
|
|
|
|
|
|
Aerospace
& defense: 0.69% |
|
|
|
|
|
Parsons
Corporation † |
|
|
|
808,516
|
31,693,827
|
Air
freight & logistics: 0.19% |
|
|
|
|
|
GXO
Logistics Incorporated † |
|
|
|
249,757
|
8,756,480
|
Building
products: 6.75% |
|
|
|
|
|
CSW
Industrials Incorporated ♠ |
|
|
|
862,581
|
103,337,204
|
Griffon
Corporation |
|
|
|
1,609,799
|
47,521,266
|
Janus
International Group Incorporated † |
|
|
|
2,443,102
|
21,792,470
|
JELD-WEN
Holding Incorporated † |
|
|
|
681,621
|
5,964,184
|
Quanex
Building Products Corporation ♠ |
|
|
|
2,782,780
|
50,535,285
|
Simpson
Manufacturing Company Incorporated |
|
|
|
546,267
|
42,827,333
|
UFP
Industries Incorporated |
|
|
|
522,259
|
37,686,209
|
|
|
|
|
|
309,663,951
|
Commercial
services & supplies: 2.34% |
|
|
|
|
|
ACCO
Brands Corporation |
|
|
|
3,845,700
|
18,843,932
|
Custom
Truck One Source Incorporated |
|
|
|
3,475,000
|
20,259,250
|
Ennis
Incorporated ♠ |
|
|
|
1,256,422
|
25,291,775
|
Harsco
Corporation † |
|
|
|
1,319,631
|
4,935,420
|
Matthews
International Corporation Class A |
|
|
|
221,500
|
4,963,815
|
Viad
Corporation ♠† |
|
|
|
1,050,007
|
33,159,221
|
|
|
|
|
|
107,453,413
|
Construction
& engineering: 0.99% |
|
|
|
|
|
APi
Group Corporation † |
|
|
|
3,407,467
|
45,217,087
|
Electrical
equipment: 1.55% |
|
|
|
|
|
Atkore
Incorporated †## |
|
|
|
742,609
|
57,782,406
|
Babcock
& Wilcox Enterprises Incorporated † |
|
|
|
2,119,231
|
13,520,694
|
|
|
|
|
|
71,303,100
|
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 11
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Machinery:
12.36% |
|
|
|
|
|
Alamo
Group Incorporated |
|
|
|
291,849
|
$
35,684,377 |
Columbus
McKinnon Corporation |
|
|
|
961,117
|
25,142,821
|
Douglas
Dynamics Incorporated ♠ |
|
|
|
1,848,821
|
51,803,964
|
Franklin
Electric Company Incorporated |
|
|
|
1,710,869
|
139,795,106
|
Hillenbrand
Incorporated |
|
|
|
578,157
|
21,229,925
|
Hillman
Group Incorporated |
|
|
|
3,622,900
|
27,316,666
|
Hillman
Solutions Corporation † |
|
|
|
2,182,381
|
16,455,153
|
Kadant
Incorporated |
|
|
|
305,289
|
50,925,258
|
Mayville
Engineering Company Incorporated † |
|
|
|
1,628,924
|
10,604,295
|
Mueller
Industries Incorporated ♠## |
|
|
|
3,139,496
|
186,611,642
|
NN
Incorporated †« |
|
|
|
946,098
|
1,617,828
|
|
|
|
|
|
567,187,035
|
Professional
services: 2.63% |
|
|
|
|
|
CBIZ
Incorporated † |
|
|
|
1,637,002
|
70,030,946
|
Korn
Ferry International |
|
|
|
1,073,437
|
50,397,867
|
|
|
|
|
|
120,428,813
|
Road
& rail: 0.84% |
|
|
|
|
|
Werner
Enterprises Incorporated |
|
|
|
1,028,689
|
38,678,706
|
Trading
companies & distributors: 0.82% |
|
|
|
|
|
Air
Lease Corporation |
|
|
|
956,100
|
29,648,661
|
Custom
Truck One Source Incorporated †« |
|
|
|
1,350,793
|
7,875,123
|
|
|
|
|
|
37,523,784
|
Information
technology: 4.23% |
|
|
|
|
|
Electronic
equipment, instruments & components: 1.53% |
|
|
|
|
|
Belden
Incorporated |
|
|
|
1,169,293
|
70,180,966
|
IT
services: 2.19% |
|
|
|
|
|
Concentrix
Corporation |
|
|
|
114,200
|
12,748,146
|
Euronet
Worldwide Incorporated † |
|
|
|
75,000
|
5,682,000
|
Global
Blue Group Holding AG |
|
|
|
4,536,904
|
21,005,866
|
Kyndryl
Holdings Incorporated † |
|
|
|
3,264,489
|
26,997,324
|
Maximus
Incorporated |
|
|
|
588,400
|
34,050,708
|
|
|
|
|
|
100,484,044
|
Software:
0.51% |
|
|
|
|
|
E2open
Parent Holding Incorporated † |
|
|
|
3,077,572
|
18,680,862
|
Synchronoss
Technologies Incorporated † |
|
|
|
4,327,500
|
4,933,350
|
|
|
|
|
|
23,614,212
|
Materials: 16.09%
|
|
|
|
|
|
Chemicals:
8.35% |
|
|
|
|
|
Avient
Corporation |
|
|
|
3,176,901
|
96,260,100
|
Diversey
Holdings Limited † |
|
|
|
2,050,560
|
9,965,722
|
Ecovyst
Incorporated † |
|
|
|
3,945,238
|
33,297,809
|
Element
Solutions Incorporated |
|
|
|
668,592
|
10,877,992
|
Innospec
Incorporated ♠ |
|
|
|
1,740,494
|
149,108,121
|
Minerals
Technologies Incorporated |
|
|
|
229,756
|
11,352,244
|
NewMarket
Corporation |
|
|
|
240,293
|
72,287,343
|
|
|
|
|
|
383,149,331
|
The accompanying notes are an integral part of these financial
statements.
12 | Allspring Special Small Cap Value
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Construction
materials: 2.64% |
|
|
|
|
|
Eagle
Materials Incorporated |
|
|
|
1,131,401
|
$
121,263,559 |
Containers
& packaging: 3.33% |
|
|
|
|
|
Myers
Industries Incorporated |
|
|
|
1,671,660
|
27,532,240
|
Silgan
Holdings Incorporated |
|
|
|
1,730,665
|
72,757,157
|
Trimas
Corporation |
|
|
|
2,094,063
|
52,498,159
|
|
|
|
|
|
152,787,556
|
Paper
& forest products: 1.77% |
|
|
|
|
|
Mativ
Holdings Inc ♠ |
|
|
|
3,679,722
|
81,248,262
|
Real
estate: 0.56% |
|
|
|
|
|
Equity
REITs: 0.56% |
|
|
|
|
|
Washington
REIT |
|
|
|
1,450,410
|
25,469,200
|
Utilities: 0.67%
|
|
|
|
|
|
Electric
utilities: 0.67% |
|
|
|
|
|
Hawaiian
Electric Industries Incorporated |
|
|
|
889,664
|
30,835,754
|
Total
Common stocks (Cost $4,481,047,607) |
|
|
|
|
4,363,023,755
|
|
|
|
|
|
|
Investment
companies: 1.13% |
|
|
|
|
|
Mutual
funds: 1.13% |
|
|
|
|
|
iShares
Russell 2000 Index ETF |
|
|
|
314,275
|
51,830,233
|
Total
Investment companies (Cost $56,092,263) |
|
|
|
|
51,830,233
|
|
|
Yield
|
|
|
|
Short-term
investments: 2.76% |
|
|
|
|
|
Investment
companies: 2.76% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
124,897,784
|
124,897,784
|
Securities
Lending Cash Investments LLC ♠∩∞ |
|
3.08
|
|
1,780,491
|
1,780,491
|
Total
Short-term investments (Cost $126,678,275) |
|
|
|
|
126,678,275
|
Total
investments in securities (Cost $4,663,818,145) |
98.97%
|
|
|
|
4,541,532,263
|
Other
assets and liabilities, net |
1.03
|
|
|
|
47,327,948
|
Total
net assets |
100.00%
|
|
|
|
$4,588,860,211
|
†
|
Non-income-earning
security |
♦
|
The
security is fair valued in accordance with procedures approved by the Board of Trustees. |
«
|
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. |
##
|
All
or a portion of this security is segregated as collateral for investments in derivative instruments. |
Abbreviations:
|
REIT
|
Real
estate investment trust |
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 13
Portfolio of
investments—September 30, 2022 (unaudited)
Investments in
affiliates
An affiliated investment is an investment in which the
Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of
the period were as follows:
|
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 |
Common
Stocks |
|
|
|
|
|
|
|
|
|
Central
Garden & Pet Company† |
$
35,722,863 |
$
29,713 |
$
0 |
$
0 |
|
$
(6,440,451) |
|
$
29,312,125 |
813,322
|
$
0 |
CSW
Industrials Incorporated |
100,337,313
|
1,056,901
|
0
|
0
|
|
1,942,990
|
|
103,337,204
|
862,581
|
293,159
|
DallasNews
Corporation Class A |
3,757,683
|
0
|
(850,593)
|
(2,637,121)
|
|
1,755,841
|
|
2,025,810
|
436,597
|
827,663
|
Delta
Apparel Incorporated† |
17,924,703
|
13,759
|
0
|
0
|
|
(9,513,656)
|
|
8,424,806
|
602,202
|
0
|
Denny’s
Corporation† |
64,584,064
|
639,745
|
0
|
0
|
|
(22,310,332)
|
|
42,913,477
|
4,560,412
|
0
|
Dine
Brands Global Incorporated |
81,172,687
|
375,259
|
(3,634,052)
|
(546,554)
|
|
(14,205,035)
|
|
63,162,305
|
993,743
|
1,525,939
|
Douglas
Dynamics Incorporated |
63,549,474
|
367,932
|
0
|
0
|
|
(12,113,442)
|
|
51,803,964
|
1,848,821
|
1,071,852
|
Ennis
Incorporated |
24,606,270
|
0
|
(1,490,593)
|
(72,749)
|
|
2,248,847
|
|
25,291,775
|
1,256,422
|
649,163
|
Glassbridge
Enterprises Incorporated† |
9,926
|
0
|
0
|
0
|
|
28,249
|
|
38,175
|
1,527
|
0
|
Innospec
Incorporated |
165,737,985
|
597,281
|
(5,706,497)
|
(172,528)
|
|
(11,348,120)
|
|
149,108,121
|
1,740,494
|
1,923,345
|
J
& J Snack Foods Corporation |
158,418,985
|
2,481,150
|
(3,201,873)
|
(713,077)
|
|
(25,494,417)
|
|
131,490,768
|
1,015,608
|
1,288,927
|
Mativ
Holdings Inc |
0
|
154,683,625
|
0
|
(291,456)
|
|
(73,143,907)
|
|
81,248,262
|
3,679,722
|
2,819,690
|
Mueller
Industries Incorporated |
171,377,466
|
5,668,024
|
(8,289,414)
|
1,887,638
|
|
15,967,928
|
|
186,611,642
|
3,139,496
|
2,066,467
|
Quanex
Building Products Corporation |
56,833,951
|
1,570,736
|
0
|
0
|
|
(7,869,402)
|
|
50,535,285
|
2,782,780
|
442,860
|
Tupperware
Brands Corporation† |
51,130,899
|
1,062,750
|
(7,268,001)
|
(12,246,733)
|
|
(21,204,383)
|
|
11,474,532
|
1,751,837
|
0
|
Viad
Corporation† |
42,137,421
|
178,001
|
(5,425,336)
|
(2,436,258)
|
|
(1,294,606)
|
|
33,159,221
|
1,050,007
|
0
|
Westwood
Holdings Group Incorporated |
6,843,184
|
0
|
0
|
0
|
|
(2,541,627)
|
|
4,301,557
|
446,683
|
134,005
|
Short-term
investments |
|
|
|
|
|
|
|
|
|
Allspring
Government Money Market Fund Select Class |
110,061,302
|
581,217,415
|
(566,380,933)
|
0
|
|
0
|
|
124,897,784
|
124,897,784
|
787,652
|
Securities
Lending Cash Investments LLC |
3,452,615
|
47,086,421
|
(48,758,545)
|
0
|
|
0
|
|
1,780,491
|
1,780,491
|
74,466
# |
Investments
in affiliates no longer held at end of period |
|
|
|
|
|
|
|
|
|
|
Neenah
Incorporated |
61,082,785
|
76,658
|
(98,150,707)
|
0
|
|
36,991,264
|
|
0
|
0
|
0
|
|
|
|
|
$(17,228,838)
|
|
$(148,544,259)
|
|
$1,100,917,304
|
|
$13,905,188
|
† |
Non-income-earning
security |
# |
Amount
shown represents income before fees and rebates. |
Written
options
Description
|
Counterparty
|
Number
of contracts |
Notional
amount |
Exercise
price |
Expiration
date |
Value
|
Call
|
|
|
|
|
|
|
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
$(2,000,000)
|
$
80.00 |
10-21-2022
|
$
(70,000) |
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(2,125,000)
|
85.00
|
11-18-2022
|
(95,625)
|
J&J
Snack Foods Corporation |
Bank
of America Securities Incorporated |
(250)
|
(3,250,000)
|
130.00
|
11-18-2022
|
(157,500)
|
Mueller
Industries Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(1,750,000)
|
70.00
|
10-21-2022
|
(8,125)
|
Mueller
Industries Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(1,875,000)
|
75.00
|
12-16-2022
|
(12,392)
|
The accompanying notes are an integral part of these financial
statements.
14 | Allspring Special Small Cap Value
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
Written options (continued)
Description
|
Counterparty
|
Number
of contracts |
Notional
amount |
Exercise
price |
Expiration
date |
Value
|
Call
(continued) |
|
|
|
|
|
|
Petroleum
Company |
Bank
of America Securities Incorporated |
(500)
|
$(2,000,000)
|
$
40.00 |
10-21-2022
|
$
(48,750) |
Southwestern
Energy Company |
Bank
of America Securities Incorporated |
(1,000)
|
(800,000)
|
8.00
|
10-21-2022
|
(3,000)
|
Spectrum
Brands Holdings Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(1,250,000)
|
50.00
|
10-21-2022
|
(4,375)
|
Put
|
|
|
|
|
|
|
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(2,000,000)
|
80.00
|
10-21-2022
|
(118,750)
|
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(2,125,000)
|
85.00
|
10-21-2022
|
(206,250)
|
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(1,875,000)
|
75.00
|
11-18-2022
|
(123,750)
|
Atkore
International Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(1,750,000)
|
70.00
|
11-18-2022
|
(74,375)
|
Avient
Corporation |
Bank
of America Securities Incorporated |
(500)
|
(1,750,000)
|
35.00
|
11-18-2022
|
(277,500)
|
Azenta
Incorporated |
Bank
of America Securities Incorporated |
(500)
|
(2,750,000)
|
55.00
|
10-21-2022
|
(597,500)
|
Chord
Energy Corporation |
Bank
of America Securities Incorporated |
(250)
|
(3,125,000)
|
125.00
|
10-21-2022
|
(80,000)
|
Concenrix
Corporation |
Bank
of America Securities Incorporated |
(500)
|
(6,000,000)
|
120.00
|
10-21-2022
|
(472,500)
|
Concentrix
Corporation |
Bank
of America Securities Incorporated |
(250)
|
(2,750,000)
|
110.00
|
11-18-2022
|
(151,250)
|
Enovis
Corporation |
Bank
of America Securities Incorporated |
(1,250)
|
(6,250,000)
|
50.00
|
10-21-2022
|
(490,625)
|
Euronet
Worldwide Incorporated |
Bank
of America Securities Incorporated |
(250)
|
(2,125,000)
|
85.00
|
10-21-2022
|
(248,750)
|
Petroleum
Company |
Bank
of America Securities Incorporated |
(250)
|
(875,000)
|
35.00
|
11-18-2022
|
(107,500)
|
Simpson
Manufacturing Company Incorporated |
Bank
of America Securities Incorporated |
(500)
|
(4,750,000)
|
95.00
|
10-21-2022
|
(835,000)
|
SM
Energy Company |
Bank
of America Securities Incorporated |
(1,000)
|
(4,000,000)
|
40.00
|
11-18-2022
|
(560,000)
|
Southwestern
Energy Company |
Bank
of America Securities Incorporated |
(1,000)
|
(700,000)
|
7.00
|
10-21-2022
|
(100,500)
|
|
|
|
|
|
|
$(4,844,017)
|
The accompanying notes are an integral part of these
financial statements.
Allspring Special Small Cap Value
Fund | 15
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities (including $1,672,448 of securities loaned), at value (cost
$3,575,390,707)
|
$
3,440,614,959 |
Investments in affiliated securities, at value (cost
$1,088,427,438)
|
1,100,917,304
|
Cash
|
37,999
|
Cash at broker segregated for written
options
|
42,824,952
|
Receivable for investments
sold
|
12,143,170
|
Receivable for
dividends
|
10,121,254
|
Receivable for Fund shares
sold
|
10,005,400
|
Receivable for securities lending income,
net
|
3,013
|
Prepaid expenses and other
assets
|
318,985
|
Total
assets
|
4,616,987,036
|
Liabilities
|
|
Payable for Fund shares
redeemed
|
11,414,680
|
Payable for investments
purchased
|
5,424,249
|
Written options at value (premiums received
$2,821,480)
|
4,844,017
|
Management fee
payable
|
3,404,992
|
Payable upon receipt of securities
loaned
|
1,780,491
|
Administration fees
payable
|
485,048
|
Distribution fees
payable
|
8,158
|
Trustees’ fees and expenses
payable
|
3,331
|
Accrued expenses and other
liabilities
|
761,859
|
Total
liabilities
|
28,126,825
|
Total net
assets
|
$4,588,860,211
|
Net
assets consist of |
|
Paid-in
capital
|
$
4,449,432,869 |
Total distributable
earnings
|
139,427,342
|
Total net
assets
|
$4,588,860,211
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
646,036,343 |
Shares outstanding – Class
A1
|
19,685,731
|
Net asset value per share – Class
A |
$32.82
|
Maximum offering price per share – Class
A2
|
$34.82
|
Net assets – Class
C |
$
7,402,259 |
Shares outstanding – Class
C1
|
256,377
|
Net asset value per share – Class
C |
$28.87
|
Net assets – Class
R |
$
11,799,184 |
Shares outstanding – Class
R1
|
354,501
|
Net asset value per share – Class
R |
$33.28
|
Net assets – Class
R6
|
$
1,419,796,846 |
Shares outstanding – Class
R61
|
41,967,766
|
Net asset value per share – Class
R6
|
$33.83
|
Net assets – Administrator
Class
|
$
102,049,147 |
Shares outstanding – Administrator
Class1
|
3,022,905
|
Net asset value per share – Administrator
Class
|
$33.76
|
Net assets – Institutional
Class
|
$
2,401,776,432 |
Shares outstanding – Institutional
Class1
|
71,023,252
|
Net
asset value per share – Institutional
Class
|
$33.82
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Special Small Cap Value
Fund
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends (net of foreign withholdings taxes of
$64,619)
|
$
45,615,086 |
Income from affiliated
securities
|
13,861,089
|
Total investment
income
|
59,476,175
|
Expenses
|
|
Management
fee
|
20,929,501
|
Administration
fees |
|
Class
A |
782,402
|
Class
C |
9,952
|
Class
R |
14,532
|
Class
R6
|
245,430
|
Administrator
Class
|
80,086
|
Institutional
Class
|
1,868,353
|
Shareholder
servicing fees |
|
Class
A |
931,431
|
Class
C |
11,831
|
Class
R |
17,300
|
Administrator
Class
|
147,622
|
Distribution
fees |
|
Class
C |
35,446
|
Class
R |
17,221
|
Custody and accounting
fees
|
197,838
|
Professional
fees
|
26,995
|
Registration
fees
|
77,424
|
Shareholder report
expenses
|
215,209
|
Trustees’ fees and
expenses
|
11,191
|
Other fees and
expenses
|
71,758
|
Total
expenses
|
25,691,522
|
Less:
Fee waivers and/or expense reimbursements |
|
Class
A |
(1,214)
|
Class
C |
(1)
|
Administrator
Class
|
(811)
|
Institutional
Class
|
(16)
|
Net
expenses
|
25,689,480
|
Net investment
income
|
33,786,695
|
Realized
and unrealized gains (losses) on investments |
|
Net
realized gains (losses) on |
|
Unaffiliated
securities
|
26,530,528
|
Affiliated
securities
|
(17,228,838)
|
Written
options
|
11,920,070
|
Net realized gains on
investments
|
21,221,760
|
Net
change in unrealized gains (losses) on |
|
Unaffiliated
securities
|
(1,028,759,435)
|
Affiliated
securities
|
(148,544,259)
|
Written
options
|
(1,736,658)
|
Net change in unrealized gains (losses) on
investments
|
(1,179,040,352)
|
Net realized and unrealized gains (losses) on
investments
|
(1,157,818,592)
|
Net decrease in net assets resulting from
operations
|
$(1,124,031,897)
|
The accompanying notes are an integral part of these
financial statements.
Allspring Special Small Cap Value
Fund | 17
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
income
|
|
$
33,786,695 |
|
$
27,875,748 |
Net realized gains on
investments
|
|
21,221,760
|
|
476,640,248
|
Net change in unrealized gains (losses) on
investments
|
|
(1,179,040,352)
|
|
(343,672,729)
|
Net increase (decrease) in net assets resulting from
operations
|
|
(1,124,031,897)
|
|
160,843,267
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
0
|
|
(50,783,331)
|
Class
C |
|
0
|
|
(807,798)
|
Class
R |
|
0
|
|
(917,911)
|
Class
R6
|
|
0
|
|
(114,036,990)
|
Administrator
Class
|
|
0
|
|
(11,844,857)
|
Institutional
Class
|
|
0
|
|
(204,793,322)
|
Total distributions to
shareholders
|
|
0
|
|
(383,184,209)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
1,724,048
|
64,593,958
|
4,280,098
|
184,277,105
|
Class
C |
2,403
|
80,977
|
8,749
|
336,570
|
Class
R |
36,441
|
1,392,178
|
103,689
|
4,505,291
|
Class
R6
|
4,392,528
|
168,917,725
|
15,549,670
|
685,689,346
|
Administrator
Class
|
183,666
|
7,098,960
|
885,087
|
39,305,726
|
Institutional
Class
|
9,383,869
|
362,214,803
|
24,127,132
|
1,060,759,280
|
|
|
604,298,601
|
|
1,974,873,318
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
0
|
0
|
1,121,289
|
46,807,127
|
Class
C |
0
|
0
|
21,112
|
778,823
|
Class
R |
0
|
0
|
21,670
|
917,911
|
Class
R6
|
0
|
0
|
2,465,581
|
106,043,414
|
Administrator
Class
|
0
|
0
|
273,495
|
11,744,267
|
Institutional
Class
|
0
|
0
|
3,574,870
|
153,704,110
|
|
|
0
|
|
319,995,652
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(1,570,413)
|
(59,134,399)
|
(4,682,744)
|
(200,722,890)
|
Class
C |
(45,485)
|
(1,498,067)
|
(101,436)
|
(3,882,504)
|
Class
R |
(42,181)
|
(1,590,002)
|
(107,696)
|
(4,664,636)
|
Class
R6
|
(4,461,099)
|
(174,370,197)
|
(12,714,796)
|
(559,504,556)
|
Administrator
Class
|
(398,930)
|
(15,414,367)
|
(2,444,640)
|
(105,093,900)
|
Institutional
Class
|
(14,437,157)
|
(556,307,981)
|
(22,927,729)
|
(1,005,623,154)
|
|
|
(808,315,013)
|
|
(1,879,491,640)
|
Net increase (decrease) in net assets resulting from capital share
transactions
|
|
(204,016,412)
|
|
415,377,330
|
Total increase (decrease) in net
assets
|
|
(1,328,048,309)
|
|
193,036,388
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
5,916,908,520
|
|
5,723,872,132
|
End of
period
|
|
$
4,588,860,211 |
|
$
5,916,908,520 |
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Special Small Cap Value
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$40.81
|
$42.37
|
$23.39
|
$31.74
|
$34.42
|
$33.15
|
Net investment
income
|
0.18
1 |
0.07
|
0.14
1 |
0.24
|
0.22
|
0.24
|
Net realized and unrealized gains (losses) on
investments
|
(8.17)
|
1.07
|
18.98
|
(8.00)
|
(0.69)
|
2.89
|
Total from investment
operations
|
(7.99)
|
1.14
|
19.12
|
(7.76)
|
(0.47)
|
3.13
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.10)
|
(0.13)
|
(0.28)
|
(0.15)
|
(0.32)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.70)
|
(0.14)
|
(0.59)
|
(2.21)
|
(1.86)
|
Net asset value, end of
period
|
$32.82
|
$40.81
|
$42.37
|
$23.39
|
$31.74
|
$34.42
|
Total
return2
|
(19.58)%
|
2.56%
|
81.92%
|
(25.08)%
|
(0.87)%
|
9.42%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.26%
|
1.24%
|
1.27%
|
1.27%
|
1.29%
|
1.31%
|
Net
expenses
|
1.26%
|
1.24%
|
1.27%
|
1.27%
|
1.29%
|
1.31%
|
Net investment
income
|
0.96%
|
0.17%
|
0.43%
|
0.75%
|
0.67%
|
0.66%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$646,036
|
$797,067
|
$797,193
|
$381,058
|
$526,656
|
$539,499
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 19
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$36.04
|
$37.90
|
$20.99
|
$28.49
|
$31.21
|
$30.19
|
Net investment income
(loss)
|
0.03
1 |
(0.22)
1 |
(0.08)
1 |
(0.01)
1 |
(0.05)
1 |
(0.03)
1 |
Net realized and unrealized gains (losses) on
investments
|
(7.20)
|
0.96
|
17.00
|
(7.18)
|
(0.61)
|
2.64
|
Total from investment
operations
|
(7.17)
|
0.74
|
16.92
|
(7.19)
|
(0.66)
|
2.61
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
0.00
|
0.00
|
0.00
|
0.00
|
(0.05)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.59)
|
Net asset value, end of
period
|
$28.87
|
$36.04
|
$37.90
|
$20.99
|
$28.49
|
$31.21
|
Total
return2
|
(19.89)%
|
1.79%
|
80.71%
|
(25.65)%
|
(1.63)%
|
8.60%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
2.00%
|
1.99%
|
2.01%
|
2.02%
|
2.04%
|
2.06%
|
Net
expenses
|
2.00%
|
1.99%
|
2.01%
|
2.02%
|
2.04%
|
2.06%
|
Net investment income
(loss)
|
0.17%
|
(0.58)%
|
(0.29)%
|
(0.04)%
|
(0.13)%
|
(0.10)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$7,402
|
$10,792
|
$14,063
|
$11,419
|
$24,334
|
$53,145
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
20 | Allspring Special Small Cap Value
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
R |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$41.44
|
$43.01
|
$23.73
|
$32.20
|
$34.94
|
$33.73
|
Net investment income
(loss)
|
0.14
1 |
(0.03)
|
0.07
|
0.16
|
0.18
|
0.17
|
Net realized and unrealized gains (losses) on
investments
|
(8.30)
|
1.07
|
19.25
|
(8.12)
|
(0.74)
|
2.92
|
Total from investment
operations
|
(8.16)
|
1.04
|
19.32
|
(7.96)
|
(0.56)
|
3.09
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.01)
|
(0.03)
|
(0.20)
|
(0.12)
|
(0.34)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.61)
|
(0.04)
|
(0.51)
|
(2.18)
|
(1.88)
|
Net asset value, end of
period
|
$33.28
|
$41.44
|
$43.01
|
$23.73
|
$32.20
|
$34.94
|
Total
return2
|
(19.69)%
|
2.27%
|
81.50%
|
(25.29)%
|
(1.11)%
|
9.13%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.51%
|
1.49%
|
1.51%
|
1.52%
|
1.55%
|
1.57%
|
Net
expenses
|
1.51%
|
1.49%
|
1.51%
|
1.52%
|
1.55%
|
1.56%
|
Net investment income
(loss)
|
0.70%
|
(0.08)%
|
0.13%
|
0.46%
|
0.47%
|
0.43%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$11,799
|
$14,929
|
$14,733
|
$5,209
|
$6,656
|
$4,631
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 21
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
R6 |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$41.98
|
$43.51
|
$24.00
|
$32.55
|
$35.25
|
$33.93
|
Net investment
income
|
0.27
1 |
0.26
1 |
0.28
|
0.37
|
0.38
|
0.38
1 |
Net realized and unrealized gains (losses) on
investments
|
(8.42)
|
1.10
|
19.49
|
(8.17)
|
(0.72)
|
2.97
|
Total from investment
operations
|
(8.15)
|
1.36
|
19.77
|
(7.80)
|
(0.34)
|
3.35
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.29)
|
(0.25)
|
(0.44)
|
(0.30)
|
(0.49)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.89)
|
(0.26)
|
(0.75)
|
(2.36)
|
(2.03)
|
Net asset value, end of
period
|
$33.83
|
$41.98
|
$43.51
|
$24.00
|
$32.55
|
$35.25
|
Total
return2
|
(19.41)%
|
2.99%
|
82.77%
|
(24.78)%
|
(0.42)%
|
9.85%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
0.83%
|
0.81%
|
0.84%
|
0.84%
|
0.86%
|
0.88%
|
Net
expenses
|
0.83%
|
0.81%
|
0.84%
|
0.84%
|
0.86%
|
0.88%
|
Net investment
income
|
1.38%
|
0.59%
|
0.84%
|
1.12%
|
1.16%
|
0.10%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$1,419,797
|
$1,764,529
|
$1,598,341
|
$580,535
|
$518,377
|
$254,801
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
22 | Allspring Special Small Cap Value
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$41.96
|
$43.50
|
$24.00
|
$32.55
|
$35.22
|
$33.90
|
Net investment
income
|
0.20
1 |
0.11
1 |
0.16
1 |
0.26
1 |
0.27
1 |
0.27
1 |
Net realized and unrealized gains (losses) on
investments
|
(8.40)
|
1.09
|
19.48
|
(8.18)
|
(0.71)
|
2.97
|
Total from investment
operations
|
(8.20)
|
1.20
|
19.64
|
(7.92)
|
(0.44)
|
3.24
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.14)
|
(0.13)
|
(0.32)
|
(0.17)
|
(0.38)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.74)
|
(0.14)
|
(0.63)
|
(2.23)
|
(1.92)
|
Net asset value, end of
period
|
$33.76
|
$41.96
|
$43.50
|
$24.00
|
$32.55
|
$35.22
|
Total
return2
|
(19.54)%
|
2.62%
|
82.13%
|
(25.03)%
|
(0.77)%
|
9.52%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.17%
|
1.16%
|
1.19%
|
1.19%
|
1.21%
|
1.23%
|
Net
expenses
|
1.16%
|
1.16%
|
1.18%
|
1.19%
|
1.20%
|
1.20%
|
Net investment
income
|
1.03%
|
0.26%
|
0.51%
|
0.79%
|
0.74%
|
0.76%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$102,049
|
$135,870
|
$196,801
|
$105,286
|
$160,369
|
$229,992
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Special Small Cap Value
Fund | 23
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$41.98
|
$43.52
|
$24.01
|
$32.56
|
$35.27
|
$33.94
|
Net investment
income
|
0.25
1 |
0.22
1 |
0.25
1 |
0.31
|
0.33
|
0.33
|
Net realized and unrealized gains (losses) on
investments
|
(8.41)
|
1.08
|
19.50
|
(8.14)
|
(0.70)
|
3.01
|
Total from investment
operations
|
(8.16)
|
1.30
|
19.75
|
(7.83)
|
(0.37)
|
3.34
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.24)
|
(0.23)
|
(0.41)
|
(0.28)
|
(0.47)
|
Net realized
gains
|
0.00
|
(2.60)
|
(0.01)
|
(0.31)
|
(2.06)
|
(1.54)
|
Total distributions to
shareholders
|
0.00
|
(2.84)
|
(0.24)
|
(0.72)
|
(2.34)
|
(2.01)
|
Net asset value, end of
period
|
$33.82
|
$41.98
|
$43.52
|
$24.01
|
$32.56
|
$35.27
|
Total
return2
|
(19.44)%
|
2.87%
|
82.59%
|
(24.85)%
|
(0.53)%
|
9.82%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
0.93%
|
0.91%
|
0.94%
|
0.94%
|
0.96%
|
0.98%
|
Net
expenses
|
0.93%
|
0.91%
|
0.93%
|
0.94%
|
0.94%
|
0.94%
|
Net investment
income
|
1.27%
|
0.49%
|
0.77%
|
1.07%
|
1.04%
|
1.02%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
13%
|
28%
|
40%
|
39%
|
32%
|
41%
|
Net assets, end of period (000s
omitted)
|
$2,401,776
|
$3,193,721
|
$3,102,741
|
$1,465,398
|
$1,359,038
|
$1,196,501
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
24 | Allspring Special Small Cap Value
Fund
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Special Small Cap
Value Fund (the "Fund") which is a diversified series of the Trust.
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.
Options that are listed on a foreign or domestic exchange or
market are valued at the closing mid-price. Non-listed options are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies 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 the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds
Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any
actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio
of investments.
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.
Options
The Fund may write covered call options or secured put options on individual
securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market
Allspring Special Small Cap Value
Fund | 25
Notes to financial statements
(unaudited)
value of the written option. Premiums received from written options that
expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is
treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces
the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.
The Fund may also purchase call or put options. Premiums paid
are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized
losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss
associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the
options are standardized. The Fund is subject to equity price risk. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting
arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or
losses are recorded on the basis of identified cost.
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 September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $4,668,662,357 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$
664,900,986 |
Gross
unrealized losses |
(794,053,617)
|
Net
unrealized losses |
$(129,152,631)
|
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on
investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
26 | Allspring Special Small Cap Value
Fund
Notes to financial statements
(unaudited)
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
21,668,742 |
$
0 |
$0
|
$
21,668,742 |
Consumer
discretionary |
304,557,130
|
0
|
0
|
304,557,130
|
Consumer
staples |
382,708,109
|
0
|
0
|
382,708,109
|
Energy
|
335,049,504
|
0
|
0
|
335,049,504
|
Financials
|
768,464,727
|
38,175
|
0
|
768,502,902
|
Health
care |
223,598,288
|
0
|
0
|
223,598,288
|
Industrials
|
1,337,906,196
|
0
|
0
|
1,337,906,196
|
Information
technology |
194,279,222
|
0
|
0
|
194,279,222
|
Materials
|
738,448,708
|
0
|
0
|
738,448,708
|
Real
estate |
25,469,200
|
0
|
0
|
25,469,200
|
Utilities
|
30,835,754
|
0
|
0
|
30,835,754
|
Investment
companies |
51,830,233
|
0
|
0
|
51,830,233
|
Short-term
investments |
|
|
|
|
Investment
companies |
126,678,275
|
0
|
0
|
126,678,275
|
Total
assets |
$4,541,494,088
|
$38,175
|
$0
|
$4,541,532,263
|
Liabilities |
|
|
|
|
Written
options |
$
4,831,625 |
$
12,392 |
$0
|
$
4,844,017 |
Total
liabilities |
$
4,831,625 |
$12,392
|
$0
|
$
4,844,017 |
Additional sector, industry or geographic detail, if any, is
included in the Portfolio of Investments.
For the six
months ended September 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
Allspring Special Small Cap Value
Fund | 27
Notes to financial statements
(unaudited)
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 |
0.850%
|
Next
$500 million |
0.825
|
Next
$1 billion |
0.800
|
Next
$1 billion |
0.775
|
Next
$1 billion |
0.750
|
Next
$1 billion |
0.730
|
Next
$5 billion |
0.720
|
Over
$10 billion |
0.710
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.77% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC ("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.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Class
R |
0.21
|
Class
R6 |
0.03
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 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 September 30, 2022, the contractual expense caps are as follows:
28 | Allspring Special Small Cap Value
Fund
Notes to financial statements
(unaudited)
|
Expense
ratio caps |
Class
A |
1.31%
|
Class
C |
2.06
|
Class
R |
1.56
|
Class
R6 |
0.89
|
Administrator
Class |
1.20
|
Institutional
Class |
0.94
|
Distribution fees
The Trust has adopted a distribution plan for Class C and Class R shares
pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class C and Class R shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds
Management, at an annual rate of 0.75% of the average daily net assets of Class C shares and 0.25% of the average daily net assets of Class R shares.
In addition, Allspring Funds Distributor is entitled to receive
the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also entitled to receive the contingent deferred sales charges from
redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $665 from the sale of Class A shares. No contingent deferred sales charges were incurred by Class A and Class C shares for the six
months ended September 30, 2022.
Shareholder servicing
fees
The Trust has entered into contracts with one or more shareholder
servicing agents, whereby Class A, Class C, Class R, and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to
affiliates.
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 September 30, 2022 were $646,983,060 and $761,743,125, 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 September 30, 2022, the Fund had securities lending transactions with the following counterparties which are subject to
offset:
Allspring Special Small Cap Value
Fund | 29
Notes to financial statements
(unaudited)
Counterparty
|
Value
of securities on loan |
Collateral
received1 |
Net
amount |
Bank
of America Securities Incorporated |
$
12,810 |
$
(12,810) |
$0
|
JPMorgan
Securities LLC |
105,000
|
(105,000)
|
0
|
National
Financial Services LLC |
766,238
|
(766,238)
|
0
|
UBS
Securities LLC |
788,400
|
(788,400)
|
0
|
1 Collateral received within this table is limited to the collateral for the net transaction with the counterparty.
7. DERIVATIVE TRANSACTIONS
During the six months ended September 30, 2022, the Fund
entered into written options for hedging purposes and had an average of 16,245 written option contracts.
The fair value, realized gains or losses and change in
unrealized gains or losses, if any, on derivative instruments are reflected in the corresponding financial statement captions.
The Fund's written option contracts are subject to a master
netting arrangement. As of September 30, 2022, the Fund had written options contracts with the following counterparty which are subject to offset:
Counterparty
|
Value
of written options |
Collateral
received1 |
Net
amount |
Bank
of America Securities Incorporated |
$4,844,017
|
$(4,844,017)
|
$0
|
1 Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.
8. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 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 industrials sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in
any sector.
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. REDEMPTIONS IN-KIND
During the year ended March 31, 2022, the Fund redeemed assets
through in-kind redemptions for shareholders in Class R6. These redemption transactions are reflected on the Statement of Changes in Net Assets. The date of the redemption transaction, value of securities issued from the redemption, cash
paid, realized gains (losses) and the percentage of the Fund redeemed by the shareholders was as follows:
30 | Allspring Special Small Cap Value
Fund
Notes to financial statements
(unaudited)
Date
|
Value
of securities issued |
Cash
|
Realized
gains (losses) |
%
of the Fund |
11-8-2021
|
$
31,199,229 |
$645,412
|
$
17,188,502 |
0.50 %
|
12. 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 Special Small Cap Value
Fund | 31
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 1-800-222-8222, 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.
32 | Allspring Special Small Cap Value
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 124 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 Special Small Cap Value
Fund | 33
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
34 | Allspring Special Small Cap Value
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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 Special Small Cap Value
Fund | 35
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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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.
36 | Allspring Special Small Cap Value
Fund
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00365 11-22
SA246/SAR246 09-22
Semi-Annual Report
September 30, 2022
Allspring Precious Metals Fund
The views expressed and any forward-looking statements are as
of September 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 Precious Metals 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 Precious Metals Fund for the six-month period that ended September 30, 2022. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the worst as
the global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling substantially for
the six-month period.
Earlier
tailwinds provided by global stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the
prospect of more, plus the global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Precious Metals Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Precious Metals
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Precious Metals 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
Bradshaw, CFA®‡, Oleg Makhorine |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (EKWAX) |
1-20-1998
|
-20.01
|
-0.19
|
-6.88
|
|
-15.12
|
1.00
|
-6.32
|
|
1.18
|
1.09
|
Class
C (EKWCX) |
1-29-1998
|
-16.74
|
0.24
|
-6.88
|
|
-15.74
|
0.24
|
-6.88
|
|
1.93
|
1.84
|
Administrator
Class (EKWDX) |
7-30-2010
|
–
|
–
|
–
|
|
-14.99
|
1.14
|
-6.19
|
|
1.10
|
0.95
|
Institutional
Class (EKWYX) |
2-29-2000
|
–
|
–
|
–
|
|
-14.86
|
1.30
|
-6.04
|
|
0.85
|
0.79
|
FTSE
Gold Mines Index3 |
–
|
–
|
–
|
–
|
|
-19.59
|
1.01
|
-6.49
|
|
–
|
–
|
S&P
500 Index4 |
–
|
–
|
–
|
–
|
|
-15.47
|
9.24
|
11.70
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
While the S&P 500 Index is comprised of U.S. equity
securities of companies diversified across ten sectors, the Fund’s holdings are concentrated primarily in precious metals related stocks. Therefore, the performance of the S&P 500 Index is displayed only to show how the concentrated Fund
performed compared with a diversified selection of U.S. equity securities.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.09% for Class A, 1.84% for Class C, 0.95% for Administrator
Class, and 0.79% for Institutional Class. 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 |
FTSE
Gold Mines Index is an unmanaged, open-ended index designed to reflect the performance of the worldwide market in the shares of companies whose principal activity is the mining of gold. You cannot invest directly in an index. |
4 |
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. |
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Precious Metals Fund
Performance highlights
(unaudited)
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. Funds that concentrate their investments in limited sectors, such as gold-related investments, are more vulnerable to adverse market, economic,
regulatory, political, or other developments affecting those sectors. 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, geographic,
non-diversification risk, smaller-company securities risk, and subsidiary risk. Consult the Fund’s prospectus for additional information on these and other risks.
Ten
largest holdings (%) as of September 30, 20221 |
Franco-Nevada
Corporation-Legend Shares |
6.52
|
Barrick
Gold Corporation |
6.11
|
Agnico-Eagle
Mines Limited |
5.89
|
Gold
Bullion |
5.33
|
Endeavour
Mining plc |
5.31
|
Wheaton
Precious Metals Corporation-U.S. Exchange Traded Shares |
5.13
|
Royal
Gold Incorporated |
5.02
|
Kinross
Gold Corporation |
4.76
|
Gold
Fields Limited ADR |
4.55
|
B2Gold
Corporation |
4.15
|
1 |
Figures represent the
percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Country
allocation as of September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Precious Metals
Fund | 7
Consolidated fund expenses
(unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Consolidated
expenses paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
664.71 |
$4.51
|
1.08%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.65
|
$5.47
|
1.08%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
662.32 |
$7.67
|
1.84%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,015.84
|
$9.30
|
1.84%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
665.27 |
$3.97
|
0.95%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.31
|
$4.81
|
0.95%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
665.77 |
$3.30
|
0.79%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.11
|
$4.00
|
0.79%
|
1 Consolidated expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value
over the period, multiplied by 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Precious Metals Fund
Consolidated portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
|
Shares
|
Value
|
Common
stocks: 93.94% |
|
|
|
|
|
|
Australia: 7.42%
|
|
|
|
|
|
|
Capricorn
Metals Limited (Materials, Metals & mining) † |
|
|
|
|
300,000
|
$
574,353 |
Evolution
Mining Limited (Materials, Metals & mining) |
|
|
|
|
1,400,000
|
1,826,407
|
Newcrest
Mining Limited (Materials, Metals & mining) |
|
|
|
|
702,294
|
7,710,613
|
Northern
Star Resources Limited (Materials, Metals & mining) |
|
|
|
|
1,536,412
|
7,693,264
|
|
|
|
|
|
|
17,804,637
|
Canada: 64.79%
|
|
|
|
|
|
|
Agnico-Eagle
Mines Limited (Materials, Metals & mining) |
|
|
|
|
334,527
|
14,133,272
|
Agnico-Eagle
Mines Limited-Legend Shares (Materials, Metals & mining) |
|
|
|
|
35,000
|
1,478,050
|
Agnico-Eagle
Mines Limited-U.S. Exchange Traded Shares (Materials, Metals & mining) |
|
|
|
|
124,164
|
5,243,446
|
Alamos
Gold Incorporated Class A (Materials, Metals & mining) |
|
|
|
|
1,153,980
|
8,554,498
|
Artemis
Gold Incorporated (Materials, Metals & mining) † |
|
|
|
|
900,000
|
2,782,061
|
Ascot
Resources Limited (Materials, Metals & mining) † |
|
|
|
|
2,650,000
|
748,181
|
B2Gold
Corporation (Materials, Metals & mining) |
|
|
|
|
3,100,000
|
9,964,165
|
Barrick
Gold Corporation (Materials, Metals & mining) |
|
|
|
|
945,723
|
14,658,707
|
Centerra
Gold Incorporated (Materials, Metals & mining) |
|
|
|
|
200,000
|
880,298
|
Centerra
Gold Incorporated-Legend Shares (Materials, Metals & mining) 144A |
|
|
|
|
250,000
|
1,100,373
|
Dundee
Precious Metals Incorporated (Materials, Metals & mining) |
|
|
|
|
1,075,000
|
4,778,297
|
Franco-Nevada
Corporation-Legend Shares (Materials, Metals & mining) 144A |
|
|
|
|
130,948
|
15,641,525
|
Kinross
Gold Corporation (Materials, Metals & mining) |
|
|
|
|
3,032,483
|
11,415,580
|
Lundin
Gold Incorporated (Materials, Metals & mining) |
|
|
|
|
1,150,000
|
7,992,182
|
MAG
Silver Corporation (Materials, Metals & mining) † |
|
|
|
|
510,000
|
6,383,538
|
MAG
Silver Corporation-Legend Shares (Materials, Metals & mining) |
|
|
|
|
100,000
|
1,251,674
|
Marathon
Gold Corporation (Materials, Metals & mining) † |
|
|
|
|
1,300,000
|
997,575
|
Orla
Mining Limited (Materials, Metals & mining) † |
|
|
|
|
300,000
|
979,477
|
Osisko
Mining Incorporated (Materials, Metals & mining) † |
|
|
|
|
450,000
|
1,006,620
|
Pan
American Silver Corporation (Materials, Metals & mining) |
|
|
|
|
265,000
|
4,208,200
|
SilverCrest
Metals Incorporated (Materials, Metals & mining) † |
|
|
|
|
1,135,000
|
6,302,132
|
Skeena
Resources Limited (Materials, Metals & mining) † |
|
|
|
|
300,000
|
1,402,975
|
SSR
Mining Incorporated (Materials, Metals & mining) |
|
|
|
|
275,000
|
4,045,250
|
SSR
Mining Incorporated-U.S. Exchange Traded Shares (Materials, Metals & mining) |
|
|
|
|
383,552
|
5,639,368
|
Torex
Gold Resources Incorporated (Materials, Metals & mining) † |
|
|
|
|
310,000
|
2,237,449
|
Torex
Gold Resources Incorporated-Legend Shares (Materials, Metals & mining) 144A |
|
|
|
|
185,000
|
1,335,252
|
Torex
Gold Resources Incorporated-Legend Shares (Materials, Metals & mining) |
|
|
|
|
266,250
|
1,921,680
|
Triple
Flag Precious Metals Corporation (Materials, Metals & mining) |
|
|
|
|
210,000
|
2,660,441
|
Wheaton
Precious Metals Corporation (Materials, Metals & mining) |
|
|
|
|
12,950
|
419,339
|
The accompanying notes are an integral part of these consolidated financial
statements.
Allspring Precious Metals
Fund | 9
Consolidated portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
|
Shares
|
Value
|
Canada:
(continued) |
|
|
|
|
|
|
Wheaton
Precious Metals Corporation-U.S. Exchange Traded Shares (Materials, Metals & mining) |
|
|
|
|
380,000
|
$
12,296,800 |
Yamana
Gold Incorporated (Materials, Metals & mining) |
|
|
|
|
650,000
|
2,940,964
|
|
|
|
|
|
|
155,399,369
|
South
Africa: 6.46% |
|
|
|
|
|
|
AngloGold
Ashanti Limited ADR (Materials, Metals & mining) |
|
|
|
|
330,591
|
4,568,768
|
Gold
Fields Limited ADR (Materials, Metals & mining) |
|
|
|
|
1,350,000
|
10,921,500
|
|
|
|
|
|
|
15,490,268
|
United
Kingdom: 5.31% |
|
|
|
|
|
|
Endeavour
Mining plc (Materials, Metals & mining) |
|
|
|
|
690,000
|
12,727,549
|
United
States: 9.96% |
|
|
|
|
|
|
Newmont
Corporation (Materials, Metals & mining) |
|
|
|
|
150,802
|
6,338,208
|
Newmont
Corporation-Toronto Exchange Traded Shares (Materials, Metals & mining) |
|
|
|
|
131,348
|
5,514,077
|
Royal
Gold Incorporated (Materials, Metals & mining) |
|
|
|
|
128,436
|
12,049,866
|
|
|
|
|
|
|
23,902,151
|
Total
Common stocks (Cost $180,077,819) |
|
|
|
|
|
225,323,974
|
|
|
|
Expiration
date |
|
|
|
Rights: 0.00%
|
|
|
|
|
|
|
Canada: 0.00%
|
|
|
|
|
|
|
Kinross
Gold Corporation Contingent Value Rights (Materials, Metals & mining) ♦† |
|
|
3-1-2032
|
|
75,000
|
0
|
Total
Rights (Cost $0) |
|
|
|
|
|
0
|
|
|
|
|
|
|
|
Warrants: 0.00%
|
|
|
|
|
|
|
Canada:
0.00% |
|
|
|
|
|
|
Marathon
Gold Corporation (Materials, Metals & mining) ♦† |
|
|
9-20-2024
|
|
250,000
|
0
|
Total
Warrants (Cost $0) |
|
|
|
|
|
0
|
|
|
|
|
|
Troy
ounces |
|
Commodities: 5.33%
|
|
|
|
|
|
|
Gold
Bullion * |
|
|
|
|
7,690
|
12,779,600
|
Total
Commodities (Cost $4,532,552) |
|
|
|
|
|
12,779,600
|
The
accompanying notes are an integral part of these consolidated financial statements.
10 | Allspring Precious Metals
Fund
Consolidated portfolio of
investments—September 30, 2022 (unaudited)
|
|
Yield
|
|
|
Shares
|
Value
|
Short-term
investments: 0.73% |
|
|
|
|
|
|
Investment
companies: 0.73% |
|
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
|
1,747,897
|
$ 1,747,897
|
Total
Short-term investments (Cost $1,747,897) |
|
|
|
|
|
1,747,897
|
Total
investments in securities (Cost $186,358,268) |
100.00%
|
|
|
|
|
239,851,471
|
Other
assets and liabilities, net |
0.00
|
|
|
|
|
10,810
|
Total
net assets |
100.00%
|
|
|
|
|
$239,862,281
|
†
|
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
security is fair valued in accordance with procedures approved by the Board of Trustees. |
*
|
Represents an
investment held in Special Investments (Cayman) SPC, the consolidated subsidiary. |
♠
|
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 |
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 |
$8,444,788
|
$37,252,536
|
$(43,949,427)
|
$0
|
$0
|
$1,747,897
|
1,747,897
|
$25,712
|
The accompanying notes are an integral part of these
consolidated financial statements.
Allspring Precious Metals
Fund | 11
Consolidated statement of assets
and liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities, at value (cost
$180,077,819)
|
$
225,323,974 |
Investments in affiliated securities, at value (cost
$1,747,897)
|
1,747,897
|
Investments in commodities, at value (cost
$4,532,552)
|
12,779,600
|
Cash
|
227,279
|
Foreign currency, at value (cost
$2,195,755)
|
2,107,012
|
Receivable for Fund shares
sold
|
498,907
|
Receivable for
dividends
|
136,050
|
Prepaid expenses and other
assets
|
63,689
|
Total
assets
|
242,884,408
|
Liabilities
|
|
Payable for Fund shares
redeemed
|
2,727,120
|
Management fee
payable
|
117,633
|
Administration fees
payable
|
37,343
|
Distribution fee
payable
|
4,842
|
Trustees’ fees and expenses
payable
|
3,726
|
Accrued expenses and other
liabilities
|
131,463
|
Total
liabilities
|
3,022,127
|
Total net
assets
|
$239,862,281
|
Net
assets consist of |
|
Paid-in
capital
|
$
331,258,061 |
Total distributable
loss
|
(91,395,780)
|
Total net
assets
|
$239,862,281
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
130,696,800 |
Shares outstanding – Class
A1
|
3,600,210
|
Net asset value per share – Class
A |
$36.30
|
Maximum offering price per share – Class
A2
|
$38.51
|
Net assets – Class
C |
$
7,411,165 |
Shares outstanding – Class
C1
|
231,693
|
Net asset value per share – Class
C |
$31.99
|
Net assets – Administrator
Class
|
$
16,181,922 |
Shares outstanding – Administrator
Class1
|
441,772
|
Net asset value per share – Administrator
Class
|
$36.63
|
Net assets – Institutional
Class
|
$
85,572,394 |
Shares outstanding – Institutional
Class1
|
2,315,686
|
Net
asset value per share – Institutional
Class
|
$36.95
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these consolidated financial
statements.
12 | Allspring Precious Metals
Fund
Consolidated statement of
operations— six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends (net of foreign withholdings taxes of
$357,068)
|
$
2,970,042 |
Income from affiliated
securities
|
25,712
|
Total investment
income
|
2,995,754
|
Expenses
|
|
Management
fee
|
1,002,138
|
Administration
fees |
|
Class
A |
175,935
|
Class
C |
9,836
|
Administrator
Class
|
13,317
|
Institutional
Class
|
72,110
|
Shareholder
servicing fees |
|
Class
A |
209,446
|
Class
C |
11,709
|
Administrator
Class
|
25,609
|
Distribution
fee |
|
Class
C |
35,127
|
Custody and accounting
fees
|
20,668
|
Professional
fees
|
31,182
|
Registration
fees
|
27,458
|
Shareholder report
expenses
|
7,028
|
Trustees’ fees and
expenses
|
11,191
|
Transfer agent
fees
|
2,211
|
Other fees and
expenses
|
3,387
|
Total
expenses
|
1,658,352
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(84,504)
|
Class
A |
(34,182)
|
Class
C |
(1,427)
|
Administrator
Class
|
(7,550)
|
Net
expenses
|
1,530,689
|
Net investment
income
|
1,465,065
|
Realized
and unrealized gains (losses) on investments |
|
Net realized losses on
investments
|
(1,878,377)
|
Net
change in unrealized gains (losses) on |
|
Unaffiliated
securities
|
(127,920,556)
|
Commodities
|
(2,114,339)
|
Net change in unrealized gains (losses) on
investments
|
(130,034,895)
|
Net realized and unrealized gains (losses) on
investments
|
(131,913,272)
|
Net decrease in net assets resulting from
operations
|
$(130,448,207)
|
The accompanying notes are an integral part of these
consolidated financial statements.
Allspring Precious Metals
Fund | 13
Consolidated statement of
changes in net assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
income
|
|
$
1,465,065 |
|
$
2,289,676 |
Net realized gains (losses) on
investments
|
|
(1,878,377)
|
|
11,771,865
|
Net change in unrealized gains (losses) on
investments
|
|
(130,034,895)
|
|
43,339,500
|
Net increase (decrease) in net assets resulting from
operations
|
|
(130,448,207)
|
|
57,401,041
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
0
|
|
(2,465,823)
|
Class
C |
|
0
|
|
(23,828)
|
Administrator
Class
|
|
0
|
|
(285,008)
|
Institutional
Class
|
|
0
|
|
(1,978,706)
|
Total distributions to
shareholders
|
|
0
|
|
(4,753,365)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
361,822
|
16,887,094
|
635,264
|
31,820,827
|
Class
C |
13,060
|
528,950
|
34,189
|
1,491,358
|
Administrator
Class
|
157,744
|
7,216,001
|
546,383
|
27,219,384
|
Institutional
Class
|
536,312
|
24,338,599
|
908,294
|
46,314,183
|
|
|
48,970,644
|
|
106,845,752
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
0
|
0
|
50,693
|
2,290,305
|
Class
C |
0
|
0
|
590
|
23,631
|
Administrator
Class
|
0
|
0
|
6,179
|
281,352
|
Institutional
Class
|
0
|
0
|
32,848
|
1,507,057
|
|
|
0
|
|
4,102,345
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(579,619)
|
(23,951,857)
|
(999,369)
|
(48,762,130)
|
Class
C |
(34,788)
|
(1,382,223)
|
(72,521)
|
(3,120,098)
|
Administrator
Class
|
(170,288)
|
(7,387,766)
|
(393,345)
|
(19,388,309)
|
Institutional
Class
|
(749,463)
|
(32,054,557)
|
(1,081,288)
|
(53,579,450)
|
|
|
(64,776,403)
|
|
(124,849,987)
|
Net decrease in net assets resulting from capital share
transactions
|
|
(15,805,759)
|
|
(13,901,890)
|
Total increase (decrease) in net
assets
|
|
(146,253,966)
|
|
38,745,786
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
386,116,247
|
|
347,370,461
|
End of
period
|
|
$
239,862,281 |
|
$
386,116,247 |
The accompanying notes are an integral part of these
consolidated financial statements.
14 | Allspring Precious Metals
Fund
Consolidated financial
highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$54.61
|
$46.95
|
$35.30
|
$33.94
|
$32.80
|
$35.99
|
Net investment income
(loss)
|
0.19
1 |
0.27
1 |
0.08
|
(0.03)
1 |
(0.03)
1 |
(0.11)
1 |
Net realized and unrealized gains (losses) on
investments
|
(18.50)
|
8.03
|
12.35
|
1.44
|
1.17
|
(2.60)
|
Total from investment
operations
|
(18.31)
|
8.30
|
12.43
|
1.41
|
1.14
|
(2.71)
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.64)
|
(0.78)
|
(0.05)
|
0.00
|
(0.48)
|
Net asset value, end of
period
|
$36.30
|
$54.61
|
$46.95
|
$35.30
|
$33.94
|
$32.80
|
Total
return2
|
(33.53)%
|
17.96%
|
34.95%
|
4.13%
|
3.48%
|
(7.56)%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.18%
|
1.18%
|
1.17%
|
1.20%
|
1.22%
|
1.21%
|
Net
expenses
|
1.08%
|
1.09%
|
1.09%
|
1.09%
|
1.09%
|
1.04%
|
Net investment income
(loss)
|
0.86%
|
0.55%
|
0.12%
|
(0.08)%
|
(0.11)%
|
(0.32)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate3
|
7%
|
15%
|
22%
|
25%
|
19%
|
27%
|
Net assets, end of period (000s
omitted)
|
$130,697
|
$208,497
|
$193,949
|
$147,020
|
$162,860
|
$177,859
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
3 |
Portfolio turnover
rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these
consolidated financial statements.
Allspring Precious Metals
Fund | 15
Consolidated financial
highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$48.30
|
$41.35
|
$30.87
|
$29.88
|
$29.09
|
$32.07
|
Net investment income
(loss)
|
0.02
1 |
(0.09)
1 |
(0.32)
1 |
(0.29)
1 |
(0.24)
1 |
(0.33)
1 |
Net realized and unrealized gains (losses) on
investments
|
(16.33)
|
7.13
|
10.80
|
1.28
|
1.03
|
(2.30)
|
Total from investment
operations
|
(16.31)
|
7.04
|
10.48
|
0.99
|
0.79
|
(2.63)
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.09)
|
0.00
|
0.00
|
0.00
|
(0.35)
|
Net asset value, end of
period
|
$31.99
|
$48.30
|
$41.35
|
$30.87
|
$29.88
|
$29.09
|
Total
return2
|
(33.77)%
|
17.07%
|
33.95%
|
3.31%
|
2.72%
|
(8.24)%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.93%
|
1.93%
|
1.92%
|
1.95%
|
1.97%
|
1.96%
|
Net
expenses
|
1.84%
|
1.84%
|
1.84%
|
1.84%
|
1.84%
|
1.79%
|
Net investment income
(loss)
|
0.10%
|
(0.21)%
|
(0.68)%
|
(0.83)%
|
(0.88)%
|
(1.07)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate3
|
7%
|
15%
|
22%
|
25%
|
19%
|
27%
|
Net assets, end of period (000s
omitted)
|
$7,411
|
$12,241
|
$12,039
|
$11,834
|
$14,908
|
$33,022
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
3 |
Portfolio turnover
rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these
consolidated financial statements.
16 | Allspring Precious Metals
Fund
Consolidated financial
highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$55.06
|
$47.36
|
$35.66
|
$34.29
|
$33.09
|
$36.27
|
Net investment income
(loss)
|
0.22
1 |
0.38
1 |
0.17
1 |
0.02
1 |
0.01
1 |
(0.09)
1 |
Net realized and unrealized gains (losses) on
investments
|
(18.65)
|
8.05
|
12.47
|
1.45
|
1.19
|
(2.59)
|
Total from investment
operations
|
(18.43)
|
8.43
|
12.64
|
1.47
|
1.20
|
(2.68)
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.73)
|
(0.94)
|
(0.10)
|
0.00
|
(0.50)
|
Net asset value, end of
period
|
$36.63
|
$55.06
|
$47.36
|
$35.66
|
$34.29
|
$33.09
|
Total
return2
|
(33.47)%
|
18.13%
|
35.13%
|
4.24%
|
3.63%
|
(7.40)%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.10%
|
1.10%
|
1.09%
|
1.12%
|
1.14%
|
1.15%
|
Net
expenses
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.95%
|
0.91%
|
Net investment income
(loss)
|
1.00%
|
0.78%
|
0.31%
|
0.06%
|
0.04%
|
(0.25)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate3
|
7%
|
15%
|
22%
|
25%
|
19%
|
27%
|
Net assets, end of period (000s
omitted)
|
$16,182
|
$25,016
|
$13,976
|
$7,994
|
$8,086
|
$9,148
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
3 |
Portfolio turnover
rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these
consolidated financial statements.
Allspring Precious Metals
Fund | 17
Consolidated financial
highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$55.50
|
$47.74
|
$35.96
|
$34.57
|
$33.30
|
$36.47
|
Net investment
income
|
0.38
|
0.50
|
0.24
|
0.09
1 |
0.04
|
0.02
|
Net realized and unrealized gains (losses) on
investments
|
(18.93)
|
8.07
|
12.59
|
1.46
|
1.23
|
(2.67)
|
Total from investment
operations
|
(18.55)
|
8.57
|
12.83
|
1.55
|
1.27
|
(2.65)
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
0.00
|
(0.81)
|
(1.05)
|
(0.16)
|
0.00
|
(0.52)
|
Net asset value, end of
period
|
$36.95
|
$55.50
|
$47.74
|
$35.96
|
$34.57
|
$33.30
|
Total
return2
|
(33.42)%
|
18.30%
|
35.34%
|
4.43%
|
3.81%
|
(7.27)%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
0.85%
|
0.85%
|
0.84%
|
0.87%
|
0.89%
|
0.88%
|
Net
expenses
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.79%
|
0.73%
|
Net investment
income
|
1.14%
|
0.85%
|
0.37%
|
0.22%
|
0.21%
|
0.01%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate3
|
7%
|
15%
|
22%
|
25%
|
19%
|
27%
|
Net assets, end of period (000s
omitted)
|
$85,572
|
$140,363
|
$127,406
|
$107,907
|
$95,431
|
$82,650
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
3 |
Portfolio turnover
rate includes the purchases and sales transactions of its wholly-owned subsidiary. |
The accompanying notes are an integral part of these
consolidated financial statements.
18 | Allspring Precious Metals
Fund
Notes to consolidated financial
statements (unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These consolidated financial statements report on the Allspring
Precious Metals Fund (the "Fund") which is a non-diversified series of the Trust.
2. INVESTMENT IN SUBSIDIARY
The Fund invests in precious metals and minerals through
Special Investments (Cayman) SPC (the “Subsidiary”), a wholly owned subsidiary incorporated on May 3, 2005 under the laws of the Cayman Islands as an exempted segregated portfolio company with limited liability. As of September 30, 2022,
the Subsidiary held $12,779,600 in gold bullion representing 99.55% of its net assets. The Fund is the sole shareholder of the Subsidiary. As of September 30, 2022, the Fund held $12,837,652, in the Subsidiary, representing 5.35% of the Fund’s
net assets prior to consolidation.
The consolidated
financial statements of the Fund include the financial results of the Subsidiary. The Consolidated Portfolio of Investments includes positions of the Fund and the Subsidiary and the consolidated financial statements include the accounts of the Fund
and the Subsidiary. Accordingly, all interfund balances and transactions between the Fund and the Subsidiary have been eliminated in consolidation.
3. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the consolidated financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from
those estimates.
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 September 30, 2022, such fair value pricing was used in pricing certain foreign securities.
Investments in commodities are valued at their last traded
price.
Investments in registered open-end investment
companies are valued at net asset value.
Investments
which are not valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring
Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take
any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports
of
Allspring Precious Metals
Fund | 19
Notes to consolidated financial
statements (unaudited)
valuation actions taken by the Valuation Committee. On at least an annual
basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values
of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the 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.
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
Subsidiary is classified as a controlled foreign corporation under Subchapter N of the Internal Revenue Code. Therefore, the Fund is required to increase its taxable income by its share of the Subsidiary’s income. Net investment losses of the
Subsidiary cannot be deducted by the Fund in the current period nor carried forward to offset taxable income in future periods.
The Fund’s income and federal excise tax returns and all
financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax positions taken on federal, state, and foreign tax
returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $17,492,550 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$248,250,108
|
Gross
unrealized losses |
(25,891,187)
|
Net
unrealized gains |
$222,358,921
|
As of March 31, 2022, the Fund had
capital loss carryforwards which consisted of $33,908,700 in short-term capital losses and $101,545,949 in long-term capital losses.
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common
20 | Allspring Precious Metals
Fund
Notes to consolidated financial
statements (unaudited)
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.
4. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Australia
|
$
0 |
$
17,804,637 |
$0
|
$
17,804,637 |
Canada
|
132,670,815
|
22,728,554
|
0
|
155,399,369
|
South
Africa |
15,490,268
|
0
|
0
|
15,490,268
|
United
Kingdom |
12,727,549
|
0
|
0
|
12,727,549
|
United
States |
23,902,151
|
0
|
0
|
23,902,151
|
Rights
|
|
|
|
|
Canada
|
0
|
0
|
0
|
0
|
Warrants
|
|
|
|
|
Canada
|
0
|
0
|
0
|
0
|
Commodities
|
12,779,600
|
0
|
0
|
12,779,600
|
Short-term
investments |
|
|
|
|
Investment
companies |
1,747,897
|
0
|
0
|
1,747,897
|
Total
assets |
$199,318,280
|
$40,533,191
|
$0
|
$239,851,471
|
Additional sector, industry or
geographic detail, if any, is included in the Consolidated Portfolio of Investments.
For the six months ended September 30, 2022, the Fund did not
have any transfers into/out of Level 3.
5. 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:
Allspring Precious Metals
Fund | 21
Notes to consolidated financial
statements (unaudited)
Average
daily net assets |
Management
fee |
First
$500 million |
0.650%
|
Next
$500 million |
0.600
|
Next
$1 billion |
0.550
|
Next
$2 billion |
0.525
|
Next
$1 billion |
0.500
|
Next
$5 billion |
0.490
|
Over
$10 billion |
0.480
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.
The Subsidiary has entered into a separate advisory contract
with Allspring Funds Management to manage the investment and reinvestment of its assets in conformity with its investment objectives and restrictions. Under this agreement, the Subsidiary does not pay Allspring Funds Management a fee for its
services.
Allspring Funds Management has retained the
services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned
subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.40% and declining to 0.30% as the average daily net assets of
the Fund increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 2022 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 September 30, 2022, the contractual expense caps are as follows:
22 | Allspring Precious Metals
Fund
Notes to consolidated financial
statements (unaudited)
|
Expense
ratio caps |
Class
A |
1.09%
|
Class
C |
1.84
|
Administrator
Class |
0.95
|
Institutional
Class |
0.79
|
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule
12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.75%
of the average daily net assets of Class C shares.
In
addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also
entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $2,127 from the sale of Class A shares. No contingent deferred sales
charges were incurred by Class A and Class C shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C, and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
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.
6. INVESTMENT PORTFOLIO
TRANSACTIONS
Purchases and sales of investments,
excluding U.S. government obligations (if any) and short-term securities, for the six months ended September 30, 2022 were $21,185,993 and $26,164,283, respectively. These amounts include purchase and sales transactions of the Subsidiary.
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 30, 2022, there were no
borrowings by the Fund under the agreement.
8.
CONCENTRATION RISKS
The Fund concentrated its portfolio
of investments in precious metals and minerals with a geographic emphasis in Canada. A fund that invests a substantial portion of its assets in any sector or geographic region may be more affected by changes in that sector or geographic region than
would be a fund whose investments are not heavily weighted in any sector or geographic region.
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.
Allspring Precious Metals
Fund | 23
Notes to consolidated financial
statements (unaudited)
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.
24 | Allspring Precious Metals
Fund
Other information
(unaudited)
TAX INFORMATION
Pursuant to Section 853 of the Internal Revenue Code, the
following amounts have been designated as foreign taxes paid for the fiscal year ended March 31, 2022. These amounts may be less than the actual foreign taxes paid for financial statement purposes. Foreign taxes paid or withheld should be included
in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. None of the income was derived from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code.
Creditable
foreign taxes paid |
Per
share amount |
Foreign
income as % of ordinary income distributions |
$553,621
|
$0.0785
|
49.85%
|
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 1-800-222-8222, visiting our website at allspringglobal.com, or
visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at
allspringglobal.com or by visiting the SEC website at sec.gov.
QUARTERLY PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with
the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
Allspring Precious Metals
Fund | 25
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 124 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
|
26 | Allspring Precious Metals
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Precious Metals
Fund | 27
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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.
28 | Allspring Precious Metals
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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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 Precious Metals
Fund | 29
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00383 11-22
SA316/SAR316 09-22
Semi-Annual Report
September 30, 2022
Allspring
Discovery Innovation Fund
(formerly, Allspring Specialized Technology Fund)
The views expressed and any forward-looking statements are as
of September 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 Discovery Innovation
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 Discovery Innovation Fund for the six-month period that ended September 30, 2022. Effective September 6, 2022, the Fund changed its name from Allspring Specialized Technology Fund to Allspring Discovery Innovation
Fund. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities fared the worst as the global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor
returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling substantially for the six-month period.
Earlier tailwinds provided by global
stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect of more, plus the
global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Discovery Innovation
Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Discovery Innovation
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Discovery Innovation
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#, Christopher J. Warner, CFA‡# |
Average
annual total returns (%) as of September 30, 2022* |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (WFSTX) |
9-18-2000
|
-37.74
|
10.50
|
14.19
|
|
-33.94
|
11.81
|
14.86
|
|
1.28
|
1.23
|
Class
C (WFTCX) |
9-18-2000
|
-35.46
|
11.00
|
14.20
|
|
-34.46
|
11.00
|
14.20
|
|
2.03
|
1.98
|
Administrator
Class (WFTDX) |
7-30-2010
|
–
|
–
|
–
|
|
-33.88
|
11.90
|
15.00
|
|
1.20
|
1.15
|
Institutional
Class (WFTIX)3 |
10-31-2016
|
–
|
–
|
–
|
|
-33.69
|
12.18
|
15.16
|
|
0.95
|
0.90
|
Russell
3000® Growth Index4 |
–
|
–
|
–
|
–
|
|
-23.01
|
11.57
|
13.36
|
|
–
|
–
|
S&P
North American Technology Sector Index5 |
–
|
–
|
–
|
–
|
|
-30.58
|
13.29
|
16.17
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares
are sold without a front-end sales charge or contingent deferred sales charge.
* |
The Fund
changed its principal investment strategy on September 6, 2022. Performance shown prior to this date reflects the Fund’s previous investment strategy |
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 July 31, 2024, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.23% for Class A, 1.98% for Class C, 1.15% for Administrator
Class, and 0.90% for Institutional Class. 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 the Institutional Class shares prior to their inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been
included, returns for the Institutional Class shares would be higher. |
4 |
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. The Fund has changed its primary benchmark from the S&P North American Technology Sector Index to the Russell 3000® Growth Index to more accurately reflect the revised strategy of the Fund. The S&P North American Technology Sector Index will remain as a secondary benchmark for the
Fund. |
5 |
The
S&P North American Technology Sector Index is a modified market-capitalization-weighted index of select technology stocks. You cannot invest directly in an index |
Stock values fluctuate in response to the activities of
individual companies and general market and economic conditions. Funds that concentrate their investments in limited sectors, such as information technology, are more vulnerable to adverse market, economic, regulatory, political, or other
developments affecting those sectors. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to convertible securities risk, foreign investment risk, non-diversification
risk, and smaller-company securities risk. Consult the Fund’s prospectus for additional information on these and other risks.
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
# |
Mr. Smith
and Mr. Warner became portfolio managers of the Fund on July 15, 2022. |
6 | Allspring Discovery Innovation
Fund
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
Microsoft
Corporation |
8.01
|
Alphabet
Incorporated Class C |
7.66
|
UnitedHealth
Group Incorporated |
6.87
|
Visa
Incorporated Class A |
5.69
|
Amazon.com
Incorporated |
5.09
|
Teledyne
Technologies Incorporated |
4.82
|
Crowdstrike
Holdings Incorporated Class A |
4.51
|
Chipotle
Mexican Grill Incorporated |
3.99
|
Enphase
Energy Incorporated |
3.75
|
Globant
SA |
2.91
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
Allspring Discovery Innovation
Fund | 7
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
713.99 |
$
5.50 |
1.28%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,018.65
|
$
6.48 |
1.28%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
710.93 |
$
8.79 |
2.05%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,014.79
|
$10.35
|
2.05%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
714.57 |
$
5.24 |
1.22%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,018.95
|
$
6.17 |
1.22%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
715.76 |
$
4.22 |
0.98%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.16
|
$
4.96 |
0.98%
|
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 183 divided by 365 (to reflect the one-half-year period).
8 | Allspring Discovery Innovation
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 97.69% |
|
|
|
|
|
Communication
services: 12.62% |
|
|
|
|
|
Entertainment:
1.17% |
|
|
|
|
|
Spotify
Technology SA † |
|
|
|
55,884
|
$ 4,822,789
|
Interactive
media & services: 10.89% |
|
|
|
|
|
Alphabet
Incorporated Class C † |
|
|
|
328,440
|
31,579,510
|
Bumble
Incorporated Class A † |
|
|
|
116,283
|
2,498,922
|
IAC/InterActiveCorp †
|
|
|
|
75,343
|
4,172,495
|
ZoomInfo
Technologies Incorporated † |
|
|
|
159,591
|
6,648,561
|
|
|
|
|
|
44,899,488
|
Media:
0.56% |
|
|
|
|
|
Comcast
Corporation Class A |
|
|
|
79,201
|
2,322,965
|
Consumer
discretionary: 11.09% |
|
|
|
|
|
Hotels,
restaurants & leisure: 3.99% |
|
|
|
|
|
Chipotle
Mexican Grill Incorporated † |
|
|
|
10,946
|
16,449,211
|
Internet
& direct marketing retail: 7.10% |
|
|
|
|
|
Amazon.com
Incorporated † |
|
|
|
185,689
|
20,982,857
|
Global-E
Online Limited † |
|
|
|
97,853
|
2,618,546
|
MercadoLibre
Incorporated † |
|
|
|
6,823
|
5,647,943
|
|
|
|
|
|
29,249,346
|
Financials: 3.89%
|
|
|
|
|
|
Capital
markets: 1.90% |
|
|
|
|
|
MSCI
Incorporated |
|
|
|
4,218
|
1,779,110
|
S&P
Global Incorporated |
|
|
|
19,854
|
6,062,419
|
|
|
|
|
|
7,841,529
|
Insurance:
1.99% |
|
|
|
|
|
Progressive
Corporation |
|
|
|
70,645
|
8,209,655
|
Health
care: 12.47% |
|
|
|
|
|
Health
care equipment & supplies: 0.99% |
|
|
|
|
|
Intuitive
Surgical Incorporated † |
|
|
|
21,714
|
4,070,072
|
Health
care providers & services: 6.87% |
|
|
|
|
|
UnitedHealth
Group Incorporated |
|
|
|
56,083
|
28,324,158
|
Life
sciences tools & services: 4.61% |
|
|
|
|
|
Bio-Rad
Laboratories Incorporated Class A † |
|
|
|
22,555
|
9,408,593
|
Bio-Techne
Corporation |
|
|
|
33,835
|
9,609,140
|
|
|
|
|
|
19,017,733
|
Information
technology: 57.62% |
|
|
|
|
|
Communications
equipment: 2.11% |
|
|
|
|
|
F5
Networks Incorporated † |
|
|
|
20,177
|
2,920,217
|
Motorola
Solutions Incorporated |
|
|
|
25,822
|
5,783,353
|
|
|
|
|
|
8,703,570
|
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Innovation
Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Electronic
equipment, instruments & components: 8.44% |
|
|
|
|
|
Cognex
Corporation |
|
|
|
76,261
|
$
3,161,018 |
Novanta
Incorporated † |
|
|
|
101,791
|
11,772,129
|
Teledyne
Technologies Incorporated † |
|
|
|
58,876
|
19,868,884
|
|
|
|
|
|
34,802,031
|
IT
services: 16.87% |
|
|
|
|
|
Automatic
Data Processing Incorporated |
|
|
|
9,107
|
2,059,912
|
Fiserv
Incorporated † |
|
|
|
104,439
|
9,772,357
|
Globant
SA † |
|
|
|
64,102
|
11,992,202
|
MasterCard
Incorporated Class A |
|
|
|
6,751
|
1,919,579
|
Maximus
Incorporated |
|
|
|
35,954
|
2,080,658
|
MongoDB
Incorporated † |
|
|
|
37,158
|
7,378,092
|
Visa
Incorporated Class A |
|
|
|
131,998
|
23,449,445
|
WNS
Holdings Limited ADR † |
|
|
|
132,941
|
10,879,891
|
|
|
|
|
|
69,532,136
|
Semiconductors
& semiconductor equipment: 6.61% |
|
|
|
|
|
Enphase
Energy Incorporated † |
|
|
|
55,687
|
15,451,472
|
Impinj
Incorporated † |
|
|
|
33,280
|
2,663,398
|
Micron
Technology Incorporated |
|
|
|
80,663
|
4,041,216
|
Wolfspeed
Incorporated † |
|
|
|
49,330
|
5,098,749
|
|
|
|
|
|
27,254,835
|
Software:
20.75% |
|
|
|
|
|
Atlassian
Corporation plc Class A † |
|
|
|
25,651
|
5,401,844
|
Bill.com
Holdings Incorporated † |
|
|
|
48,165
|
6,375,601
|
Crowdstrike
Holdings Incorporated Class A † |
|
|
|
112,796
|
18,589,909
|
Five9
Incorporated † |
|
|
|
118,351
|
8,873,958
|
HubSpot
Incorporated † |
|
|
|
29,167
|
7,878,590
|
Microsoft
Corporation |
|
|
|
141,789
|
33,022,658
|
NortonLifeLock
Incorporated |
|
|
|
80,993
|
1,631,199
|
Olo
Incorporated Class A † |
|
|
|
221,593
|
1,750,585
|
Oracle
Corporation |
|
|
|
32,905
|
2,009,508
|
|
|
|
|
|
85,533,852
|
Technology
hardware, storage & peripherals: 2.84% |
|
|
|
|
|
Apple
Incorporated |
|
|
|
84,869
|
11,728,896
|
Total
Common stocks (Cost $376,319,001) |
|
|
|
|
402,762,266
|
|
|
Yield
|
|
|
|
Short-term
investments: 2.40% |
|
|
|
|
|
Investment
companies: 2.40% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
9,890,294
|
9,890,294
|
Total
Short-term investments (Cost $9,890,294) |
|
|
|
|
9,890,294
|
Total
investments in securities (Cost $386,209,295) |
100.09%
|
|
|
|
412,652,560
|
Other
assets and liabilities, net |
(0.09)
|
|
|
|
(373,661)
|
Total
net assets |
100.00%
|
|
|
|
$412,278,899
|
†
|
Non-income-earning
security |
♠
|
The
issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∞
|
The
rate represents the 7-day annualized yield at period end. |
The accompanying notes
are an integral part of these financial statements.
10 | Allspring Discovery Innovation
Fund
Portfolio of
investments—September 30, 2022 (unaudited)
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 |
$31,826,516
|
$76,007,534
|
$(97,943,756)
|
$0
|
|
$0
|
|
$
9,890,294 |
9,890,294
|
$
159,714 |
Investments
in affiliates no longer held at end of period |
|
|
|
|
|
|
|
|
|
|
Securities
Lending Cash Investments LLC |
786,600
|
78,600
|
(865,200)
|
0
|
|
0
|
|
0
|
0
|
43
# |
|
|
|
|
$0
|
|
$0
|
|
$9,890,294
|
|
$159,757
|
# |
Amount
shown represents income before fees and rebates. |
The accompanying notes are an integral part of these
financial statements.
Allspring Discovery Innovation
Fund | 11
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities, at value (cost
$376,319,001)
|
$
402,762,266 |
Investments in affiliated securities, at value (cost
$9,890,294)
|
9,890,294
|
Foreign currency, at value (cost
$7,257)
|
6,606
|
Receivable for Fund shares
sold
|
156,696
|
Receivable for
dividends
|
74,359
|
Prepaid expenses and other
assets
|
118,563
|
Total
assets
|
413,008,784
|
Liabilities
|
|
Management fee
payable
|
282,302
|
Payable for Fund shares
redeemed
|
192,954
|
Administration fees
payable
|
79,291
|
Distribution fee
payable
|
4,269
|
Trustees’ fees and expenses
payable
|
3,405
|
Accrued expenses and other
liabilities
|
167,664
|
Total
liabilities
|
729,885
|
Total net
assets
|
$412,278,899
|
Net
assets consist of |
|
Paid-in
capital
|
$
338,110,108 |
Total distributable
earnings
|
74,168,791
|
Total net
assets
|
$412,278,899
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
361,289,893 |
Shares outstanding – Class
A1
|
34,699,787
|
Net asset value per share – Class
A |
$10.41
|
Maximum offering price per share – Class
A2
|
$11.05
|
Net assets – Class
C |
$
5,948,443 |
Shares outstanding – Class
C1
|
982,956
|
Net asset value per share – Class
C |
$6.05
|
Net assets – Administrator
Class
|
$
6,729,126 |
Shares outstanding – Administrator
Class1
|
620,887
|
Net asset value per share – Administrator
Class
|
$10.84
|
Net assets – Institutional
Class
|
$
38,311,437 |
Shares outstanding – Institutional
Class1
|
3,458,992
|
Net
asset value per share – Institutional
Class
|
$11.08
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
12 | Allspring Discovery Innovation
Fund
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends (net of foreign withholdings taxes of
$21,937)
|
$
963,074 |
Income from affiliated
securities
|
159,760
|
Total investment
income
|
1,122,834
|
Expenses
|
|
Management
fee
|
2,050,583
|
Administration
fees |
|
Class
A |
450,314
|
Class
C |
7,876
|
Administrator
Class
|
5,295
|
Institutional
Class
|
32,776
|
Shareholder
servicing fees |
|
Class
A |
534,133
|
Class
C |
9,283
|
Administrator
Class
|
10,182
|
Distribution
fee |
|
Class
C |
27,849
|
Custody and accounting
fees
|
32,854
|
Professional
fees
|
23,996
|
Registration
fees
|
35,574
|
Shareholder report
expenses
|
17,343
|
Trustees’ fees and
expenses
|
11,191
|
Other fees and
expenses
|
6,029
|
Total
expenses
|
3,255,278
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(17,780)
|
Class
A |
(119,067)
|
Class
C |
(1,178)
|
Administrator
Class
|
(763)
|
Institutional
Class
|
(8,458)
|
Net
expenses
|
3,108,032
|
Net investment
loss
|
(1,985,198)
|
Realized
and unrealized gains (losses) on investments |
|
Net realized losses on
investments
|
(27,182,492)
|
Net change in unrealized gains (losses) on
investments
|
(142,522,320)
|
Net realized and unrealized gains (losses) on
investments
|
(169,704,812)
|
Net decrease in net assets resulting from
operations
|
$(171,690,010)
|
The accompanying notes are an integral part of these
financial statements.
Allspring Discovery Innovation
Fund | 13
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
loss
|
|
$
(1,985,198) |
|
$
(7,037,826) |
Net realized gains (losses) on
investments
|
|
(27,182,492)
|
|
87,045,702
|
Net change in unrealized gains (losses) on
investments
|
|
(142,522,320)
|
|
(66,380,714)
|
Net increase (decrease) in net assets resulting from
operations
|
|
(171,690,010)
|
|
13,627,162
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
0
|
|
(143,063,634)
|
Class
C |
|
0
|
|
(4,200,146)
|
Administrator
Class
|
|
0
|
|
(2,584,254)
|
Institutional
Class
|
|
0
|
|
(19,099,092)
|
Total distributions to
shareholders
|
|
0
|
|
(168,947,126)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
342,453
|
4,139,941
|
1,025,768
|
18,709,362
|
Class
C |
16,112
|
109,639
|
69,766
|
881,654
|
Administrator
Class
|
44,434
|
548,162
|
109,867
|
2,157,542
|
Institutional
Class
|
162,985
|
2,062,501
|
807,805
|
15,521,449
|
|
|
6,860,243
|
|
37,270,007
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
0
|
0
|
8,259,821
|
138,104,208
|
Class
C |
0
|
0
|
429,463
|
4,200,146
|
Administrator
Class
|
0
|
0
|
146,691
|
2,550,952
|
Institutional
Class
|
0
|
0
|
1,064,445
|
18,883,248
|
|
|
0
|
|
163,738,554
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(1,766,597)
|
(21,055,935)
|
(4,175,414)
|
(73,339,383)
|
Class
C |
(187,930)
|
(1,306,315)
|
(295,041)
|
(3,224,878)
|
Administrator
Class
|
(95,425)
|
(1,167,895)
|
(88,403)
|
(1,634,898)
|
Institutional
Class
|
(992,746)
|
(12,329,418)
|
(2,000,907)
|
(37,260,346)
|
|
|
(35,859,563)
|
|
(115,459,505)
|
Net increase (decrease) in net assets resulting from capital share
transactions
|
|
(28,999,320)
|
|
85,549,056
|
Total decrease in net
assets
|
|
(200,689,330)
|
|
(69,770,908)
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
612,968,229
|
|
682,739,137
|
End of
period
|
|
$
412,278,899 |
|
$
612,968,229 |
The accompanying notes are an integral part of these
financial statements.
14 | Allspring Discovery Innovation
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$14.58
|
$18.55
|
$12.08
|
$13.33
|
$14.08
|
$10.95
|
Net investment
loss
|
(0.05)
|
(0.19)
1 |
(0.16)
|
(0.11)
|
(0.11)
|
(0.10)
1 |
Net realized and unrealized gains (losses) on
investments
|
(4.12)
|
1.04
|
9.44
|
(0.01)
|
2.06
|
4.20
|
Total from investment
operations
|
(4.17)
|
0.85
|
9.28
|
(0.12)
|
1.95
|
4.10
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(4.82)
|
(2.81)
|
(1.13)
|
(2.70)
|
(0.97)
|
Net asset value, end of
period
|
$10.41
|
$14.58
|
$18.55
|
$12.08
|
$13.33
|
$14.08
|
Total
return2
|
(28.60)%
|
1.26%
|
77.67%
|
(1.31)%
|
16.80%
|
38.41%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.34%
|
1.34%
|
1.35%
|
1.39%
|
1.40%
|
1.41%
|
Net
expenses
|
1.28%
|
1.33%
|
1.34%
|
1.37%
|
1.39%
|
1.41%
|
Net investment
loss
|
(0.82)%
|
(1.02)%
|
(0.98)%
|
(0.80)%
|
(0.77)%
|
(0.75)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
101%
|
93%
|
146%
|
149%
|
107%
|
109%
|
Net assets, end of period (000s
omitted)
|
$361,290
|
$526,555
|
$575,422
|
$344,949
|
$401,990
|
$353,552
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Innovation
Fund | 15
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$8.51
|
$12.64
|
$8.80
|
$10.09
|
$11.38
|
$9.06
|
Net investment
loss
|
(0.25)
|
(0.21)
1 |
(0.17)
|
(0.16)
1 |
(0.17)
1 |
(0.16)
|
Net realized and unrealized gains (losses) on
investments
|
(2.21)
|
0.90
|
6.82
|
(0.00)
2 |
1.58
|
3.45
|
Total from investment
operations
|
(2.46)
|
0.69
|
6.65
|
(0.16)
|
1.41
|
3.29
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(4.82)
|
(2.81)
|
(1.13)
|
(2.70)
|
(0.97)
|
Net asset value, end of
period
|
$6.05
|
$8.51
|
$12.64
|
$8.80
|
$10.09
|
$11.38
|
Total
return3
|
(28.91)%
|
0.51%
|
76.67%
|
(2.15)%
|
16.01%
|
37.45%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
2.08%
|
2.09%
|
2.10%
|
2.14%
|
2.15%
|
2.16%
|
Net
expenses
|
2.05%
|
2.09%
|
2.10%
|
2.13%
|
2.14%
|
2.16%
|
Net investment
loss
|
(1.60)%
|
(1.79)%
|
(1.75)%
|
(1.57)%
|
(1.52)%
|
(1.49)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
101%
|
93%
|
146%
|
149%
|
107%
|
109%
|
Net assets, end of period (000s
omitted)
|
$5,948
|
$9,822
|
$12,017
|
$8,035
|
$11,615
|
$15,932
|
1 |
Calculated
based upon average shares outstanding |
2 |
Amount
is more than $(0.005) |
3 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Discovery Innovation
Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$15.17
|
$19.13
|
$12.40
|
$13.65
|
$14.34
|
$11.12
|
Net investment
loss
|
(0.05)
1 |
(0.18)
1 |
(0.16)
|
(0.10)
1 |
(0.09)
1 |
(0.09)
1 |
Net realized and unrealized gains (losses) on
investments
|
(4.28)
|
1.04
|
9.70
|
(0.02)
|
2.10
|
4.28
|
Total from investment
operations
|
(4.33)
|
0.86
|
9.54
|
(0.12)
|
2.01
|
4.19
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(4.82)
|
(2.81)
|
(1.13)
|
(2.70)
|
(0.97)
|
Net asset value, end of
period
|
$10.84
|
$15.17
|
$19.13
|
$12.40
|
$13.65
|
$14.34
|
Total
return2
|
(28.54)%
|
1.28%
|
77.92%
|
(1.28)%
|
17.02%
|
38.55%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.26%
|
1.27%
|
1.27%
|
1.31%
|
1.32%
|
1.33%
|
Net
expenses
|
1.22%
|
1.26%
|
1.27%
|
1.28%
|
1.29%
|
1.32%
|
Net investment
loss
|
(0.77)%
|
(0.95)%
|
(0.91)%
|
(0.71)%
|
(0.65)%
|
(0.66)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
101%
|
93%
|
146%
|
149%
|
107%
|
109%
|
Net assets, end of period (000s
omitted)
|
$6,729
|
$10,192
|
$9,636
|
$11,873
|
$22,480
|
$19,140
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Discovery Innovation
Fund | 17
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$15.48
|
$19.39
|
$12.51
|
$13.73
|
$14.37
|
$11.12
|
Net investment
loss
|
(0.04)
1 |
(0.13)
|
(0.12)
|
(0.07)
|
(0.07)
|
(0.05)
|
Net realized and unrealized gains (losses) on
investments
|
(4.36)
|
1.04
|
9.81
|
(0.02)
|
2.13
|
4.27
|
Total from investment
operations
|
(4.40)
|
0.91
|
9.69
|
(0.09)
|
2.06
|
4.22
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net realized
gains
|
0.00
|
(4.82)
|
(2.81)
|
(1.13)
|
(2.70)
|
(0.97)
|
Net asset value, end of
period
|
$11.08
|
$15.48
|
$19.39
|
$12.51
|
$13.73
|
$14.37
|
Total
return2
|
(28.42)%
|
1.53%
|
78.30%
|
(1.05)%
|
17.25%
|
38.91%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.01%
|
1.01%
|
1.02%
|
1.06%
|
1.07%
|
1.08%
|
Net
expenses
|
0.98%
|
1.01%
|
1.02%
|
1.03%
|
1.04%
|
1.07%
|
Net investment
loss
|
(0.52)%
|
(0.71)%
|
(0.66)%
|
(0.47)%
|
(0.42)%
|
(0.40)%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
101%
|
93%
|
146%
|
149%
|
107%
|
109%
|
Net assets, end of period (000s
omitted)
|
$38,311
|
$66,399
|
$85,664
|
$48,504
|
$51,223
|
$27,509
|
1 |
Calculated
based upon average shares outstanding |
2 |
Returns
for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Discovery Innovation
Fund
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Discovery
Innovation Fund (formerly, Allspring Specialized Technology Fund) (the "Fund") which is a non-diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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 the methods discussed
above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation designee, Allspring Funds
Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any
actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees receives reports of
valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair value of the portfolio
of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values
of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the 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.
Allspring Discovery Innovation
Fund | 19
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.
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 September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $388,541,323 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$
42,846,832 |
Gross
unrealized losses |
(18,735,595)
|
Net
unrealized gains |
$
24,111,237 |
As of March 31, 2022, the Fund had current year deferred
post-October capital losses consisting of $1,232,958 in short-term capital losses which was recognized in the first day of the current fiscal year.
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on
investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
20 | Allspring Discovery Innovation
Fund
Notes to financial statements
(unaudited)
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
52,045,242 |
$0
|
$0
|
$
52,045,242 |
Consumer
discretionary |
45,698,557
|
0
|
0
|
45,698,557
|
Financials
|
16,051,184
|
0
|
0
|
16,051,184
|
Health
care |
51,411,963
|
0
|
0
|
51,411,963
|
Information
technology |
237,555,320
|
0
|
0
|
237,555,320
|
Short-term
investments |
|
|
|
|
Investment
companies |
9,890,294
|
0
|
0
|
9,890,294
|
Total
assets |
$412,652,560
|
$0
|
$0
|
$412,652,560
|
Additional sector, industry or
geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended September 30, 2022, the Fund did not
have any transfers into/out of Level 3.
4. TRANSACTIONS
WITH AFFILIATES AND OTHER EXPENSES
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:
Allspring Discovery Innovation
Fund | 21
Notes to financial statements
(unaudited)
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
$3 billion |
0.640
|
Next
$2 billion |
0.615
|
Next
$2 billion |
0.605
|
Next
$4 billion |
0.580
|
Over
$16 billion |
0.555
|
Prior to July 15, 2022, the
management fee rate was as follows:
Average
daily net assets |
Management
fee |
First
$500 million |
0.850%
|
Next
$500 million |
0.840
|
Next
$1 billion |
0.815
|
Next
$2 billion |
0.790
|
Next
$1 billion |
0.765
|
Next
$5 billion |
0.755
|
Over
$10 billion |
0.745
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.83% 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. Prior to July 15, 2022, Allianz Global Investors U.S., LLC, which is not an affiliate of Allspring Funds Management, was the subadviser to the Fund and was entitled to receive a fee from Allspring Funds Management at an
annual rate which started at 0.57% and declined to 0.50% as the average daily net assets of the Fund increased.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
22 | Allspring Discovery Innovation
Fund
Notes to financial statements
(unaudited)
Waivers and/or expense reimbursements
Allspring Funds Management has contractually committed to waive and/or
reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees and/or reimburse
expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level
expenses. Allspring Funds Management has contractually committed through July 31, 2024 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 September 30, 2022, the contractual expense caps are as follows:
|
Expense
ratio caps |
Class
A |
1.23%
|
Class
C |
1.98
|
Administrator
Class |
1.15
|
Institutional
Class |
0.90
|
Prior to July 15, 2022, the Fund's
expenses were contractually capped at 1.35% for Class A shares, 2.10% for Class C shares, 1.28% for Administrator Class shares, and 1.03% for Institutional Class shares.
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule
12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.75%
of the average daily net assets of Class C shares.
In
addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also
entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $1,269 from the sale of Class A shares. No contingent deferred sales
charges were incurred by Class A and Class C shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
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 September 30, 2022 were $468,664,266 and $476,396,687, 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
Allspring Discovery Innovation
Fund | 23
Notes to financial statements
(unaudited)
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 September 30, 2022, the Fund did not have any securities on loan.
7. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 30, 2022, there were no
borrowings by the Fund under the agreement.
8.
CONCENTRATION RISKS
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.
24 | Allspring Discovery Innovation
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 1-800-222-8222, 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 Discovery Innovation
Fund | 25
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 124 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
|
26 | Allspring Discovery Innovation
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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Discovery Innovation
Fund | 27
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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.
28 | Allspring Discovery Innovation
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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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 Discovery Innovation
Fund | 29
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00386 11-22
SA317/SAR317 09-22
Semi-Annual Report
September 30, 2022
Allspring Utility and
Telecommunications Fund
The views expressed and any forward-looking statements are as
of September 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 Utility and Telecommunications
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 Utility and Telecommunications Fund for the six-month period that ended September 30, 2022. Globally, stocks and bonds experienced heightened volatility through the extremely difficult period. Non-U.S. securities
fared the worst as the global economy faced multiple challenges and the strength of the U.S. dollar eroded already-poor returns of non-U.S.-dollar-denominated assets. Bonds had historically poor performance, with major fixed income indexes falling
substantially for the six-month period.
Earlier tailwinds provided by global
stimulus programs, vaccination rollouts, and recovering consumer and corporate sentiment were wiped away by the highest rate of inflation in four decades, the impact of ongoing aggressive central bank rate hikes and the prospect of more, plus the
global reverberations of the Russia-Ukraine war. The already-significant global supply chain disruptions were compounded by China’s COVID-19 lockdowns.
For the six-month period, both stocks and
bonds registered major losses, with even U.S. bonds suffering deep losses and other assets faring worse. For the period, U.S. stocks, based on the S&P 500 Index,1 lost
20.20%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned -22.27%, while the MSCI EM Index (Net) (USD)3 declined 21.70%. Among bond indexes, the Bloomberg U.S. Aggregate Bond Index,4 returned -9.22%, the
Bloomberg Global Aggregate ex-USD Index (unhedged),5 returned -18.89%, the Bloomberg Municipal Bond
Index6 declined 6.30%, and the ICE BofA U.S. High Yield Index7 fell 10.56%.
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 Utility and
Telecommunications Fund
Letter to shareholders
(unaudited)
Rising inflation, COVID, and the Russian invasion of Ukraine
drove market performance.
Just before the six-month
reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery continued, with broad and deep losses, as both the S&P 500 Index 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. The ensuing global
ripple effect 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 Federal Reserve (Fed) monetary tightening moves.
Market volatility continued in May, although markets recovered
ground late in the month. Value stocks outperformed growth stocks. The concerns that had dominated markets for months continued, including high inflation and geopolitical tensions that added to high crude oil, gasoline, and food prices. In response,
the Fed raised the federal funds rate by 0.50%, with widescale 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. U.S.
retail sales for April, released in May, indicated a fourth consecutive monthly increase, reflecting continued consumer resilience.
A dreadful year in financial markets continued in June with
stocks posting further losses en route 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. Meanwhile, U.S. economic data showed resilience 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.
Markets rebounded in July, led by U.S. stocks. While evidence
began to point to an economic slowdown after two consecutive quarters of declining gross domestic product (economic contraction), the U.S. labor market remained surprisingly strong: July nonfarm payrolls grew by more than 500,000 and U.S.
unemployment dipped to 3.5%. Meanwhile, crude oil and retail gasoline prices, major contributors to recent overall inflation, fell substantially from earlier highs. And while U.S. home prices rose, sales fell as houses became less affordable with
mortgage rates at a 13-year high. The Fed raised the federal funds rate another 0.75% in July—to a range of 2.25% to 2.50%—and forecasts pointed to continued rate increases.
August was yet another broadly challenging month for financial
markets, with more red ink flowing. High inflation persisted, cresting 9% in the eurozone and remaining above 8% in the U.S. despite the Fed’s aggressive monetary policy and a major drop in global crude oil and gasoline prices from their June
peak. One positive note in the U.S. was the resilience of the country’s jobs market. However, the Fed’s job was clearly not complete. One longer-term bright spot was the U.S. Congress’s passage of the Inflation Reduction Act.
Its primary stated goals include include to reduce inflation (though not immediately) by curbing the deficit, capping health care spending by seniors, and investing in domestic sources of clean energy.
“
Just before the six-month reporting period began, global financial markets had been rocked by the Russian invasion of Ukraine and resulting spike in volatility. In April, the market misery
continued, with broad and deep losses, as both the S&P 500 Index and MSCI ACWI (Net) fell 8% or more for the month.”
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 Utility and Telecommunications
Fund | 3
Letter to shareholders
(unaudited)
The market misery continued in September.
There was nowhere to hide as all asset classes suffered major losses at the hands of persistent inflation. Central banks kept up their battle against rapidly rising prices with more rate hikes. The strength of the U.S. dollar made things even more
difficult for investors holding assets in other currencies. U.S. mortgage rates jumped to near 7% on 30-year fixed-rate mortgages; the decreased housing affordability began to cool demand somewhat. The U.K. experienced a sharp sell-off of government
bonds and the British pound in September as investors panicked in response to a new government budget that was seen as financially unsound. The market meltdown forced the Bank of England to step in and buy long-dated government bonds. The drama
continued into the next fiscal year.
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
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.
4 | Allspring Utility and
Telecommunications Fund
This
page is intentionally left blank.
Performance highlights
(unaudited)
Investment
objective |
The Fund seeks total return,
consisting of current income and capital appreciation. |
Manager
|
Allspring Funds Management,
LLC |
Subadviser
|
Allspring Global Investments,
LLC |
Portfolio
managers |
Kent
Newcomb, CFA®‡, Jack Spudich, CFA®‡ |
Average
annual total returns (%) as of September 30, 2022 |
|
|
Including
sales charge |
|
Excluding
sales charge |
|
Expense
ratios1 (%) |
|
Inception
date |
1
year |
5
year |
10
year |
|
1
year |
5
year |
10
year |
|
Gross
|
Net
2 |
Class
A (EVUAX) |
1-4-1994
|
-7.95
|
5.72
|
7.73
|
|
-2.34
|
6.98
|
8.37
|
|
1.16
|
1.05
|
Class
C (EVUCX) |
9-2-1994
|
-4.03
|
6.18
|
7.72
|
|
-3.03
|
6.18
|
7.72
|
|
1.91
|
1.80
|
Administrator
Class (EVUDX) |
7-30-2010
|
–
|
–
|
–
|
|
-2.20
|
7.14
|
8.56
|
|
1.08
|
0.92
|
Institutional
Class (EVUYX) |
2-28-1994
|
–
|
–
|
–
|
|
-2.03
|
7.34
|
8.73
|
|
0.83
|
0.72
|
S&P
500 Utilities Index3 |
–
|
–
|
–
|
–
|
|
5.58
|
7.82
|
9.85
|
|
–
|
–
|
S&P
500 Index4 |
–
|
–
|
–
|
–
|
|
-15.47
|
9.24
|
11.70
|
|
–
|
–
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. 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. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data
quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, allspringglobal.com.
While the S&P 500 Index is comprised of U.S. equity
securities of companies diversified across ten sectors, the Fund’s holdings are concentrated primarily in utilities and telecommunication services stocks. Therefore, the performance of the S&P 500 Index is displayed only to show how the
concentrated Fund performed compared with a diversified selection of U.S. equity securities.
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.
For Class A shares, the maximum front-end sales charge is
5.75%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class 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 July 31, 2023, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.05% for Class A, 1.80% for Class C, 0.92% for Administrator
Class, and 0.72% for Institutional Class. 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
S&P 500 Utilities Index is a market-value-weighted index that measures the performance of all stocks within the utilities sector of the S&P 500 Index. You cannot invest directly in an index. |
4 |
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. |
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute. |
6 | Allspring Utility and
Telecommunications Fund
Performance highlights
(unaudited)
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. Funds that concentrate their investments in limited sectors, such as utilities and
telecommunication services, are more vulnerable to adverse market, economic, regulatory, political, or other developments affecting those sectors. Certain investment strategies tend to increase the total risk of an investment (relative to the
broader market). This fund is exposed to convertible securities risk, foreign investment risk, high-yield securities risk, smaller-company securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information
on these and other risks.
Allspring Utility and Telecommunications
Fund | 7
Performance highlights
(unaudited)
Ten
largest holdings (%) as of September 30, 20221 |
NextEra
Energy Incorporated |
14.05
|
Sempra
Energy |
4.81
|
Duke
Energy Corporation |
4.69
|
Dominion
Energy Incorporated |
4.69
|
American
Electric Power Company Incorporated |
4.43
|
The
Southern Company |
4.08
|
Xcel
Energy Incorporated |
3.72
|
Exelon
Corporation |
3.47
|
American
Tower Corporation |
3.43
|
WEC
Energy Group Incorporated |
3.24
|
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 September 30, 20221 |
1 |
Figures represent the
percentage of the Fund's long-term investments. Allocations are subject to change and may have changed since the date specified. |
8 | Allspring Utility and
Telecommunications Fund
Fund expenses (unaudited)
As a shareholder of the Fund, you incur two types of
costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing
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 April 1, 2022 to September 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 transactional costs, such as sales charges (loads) and contingent deferred sales charges. 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 transactional costs were included, your costs would have been higher.
|
Beginning
account value 4-1-2022 |
Ending
account value 9-30-2022 |
Expenses
paid during the period1 |
Annualized
net expense ratio |
Class
A |
|
|
|
|
Actual
|
$1,000.00
|
$
869.43 |
$4.83
|
1.03%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,019.90
|
$5.22
|
1.03%
|
Class
C |
|
|
|
|
Actual
|
$1,000.00
|
$
866.65 |
$8.42
|
1.80%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,016.04
|
$9.10
|
1.80%
|
Administrator
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
870.30 |
$4.31
|
0.92%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,020.46
|
$4.66
|
0.92%
|
Institutional
Class |
|
|
|
|
Actual
|
$1,000.00
|
$
871.24 |
$3.38
|
0.72%
|
Hypothetical
(5% return before expenses) |
$1,000.00
|
$1,021.46
|
$3.65
|
0.72%
|
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 183 divided by 365 (to reflect the one-half-year period).
Allspring Utility and Telecommunications
Fund | 9
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Common
stocks: 97.55% |
|
|
|
|
|
Communication
services: 5.09% |
|
|
|
|
|
Diversified
telecommunication services: 2.54% |
|
|
|
|
|
Verizon
Communications Incorporated |
|
|
|
274,564
|
$ 10,425,195
|
Media:
2.55% |
|
|
|
|
|
Comcast
Corporation Class A |
|
|
|
357,700
|
10,491,341
|
Consumer
discretionary: 2.03% |
|
|
|
|
|
Multiline
retail: 0.80% |
|
|
|
|
|
Target
Corporation |
|
|
|
22,069
|
3,274,819
|
Specialty
retail: 1.23% |
|
|
|
|
|
The
Home Depot Incorporated |
|
|
|
18,381
|
5,072,053
|
Financials: 1.01%
|
|
|
|
|
|
Banks:
1.01% |
|
|
|
|
|
JPMorgan
Chase & Company |
|
|
|
39,772
|
4,156,174
|
Health
care: 3.53% |
|
|
|
|
|
Biotechnology:
1.71% |
|
|
|
|
|
Amgen
Incorporated |
|
|
|
31,093
|
7,008,362
|
Health
care providers & services: 1.82% |
|
|
|
|
|
UnitedHealth
Group Incorporated |
|
|
|
14,830
|
7,489,743
|
Information
technology: 5.75% |
|
|
|
|
|
Communications
equipment: 2.90% |
|
|
|
|
|
Cisco
Systems Incorporated |
|
|
|
297,717
|
11,908,680
|
IT
services: 2.85% |
|
|
|
|
|
MasterCard
Incorporated Class A |
|
|
|
20,588
|
5,853,992
|
Visa
Incorporated Class A |
|
|
|
32,898
|
5,844,330
|
|
|
|
|
|
11,698,322
|
Real
estate: 3.43% |
|
|
|
|
|
Equity
REITs: 3.43% |
|
|
|
|
|
American
Tower Corporation |
|
|
|
65,522
|
14,067,573
|
Utilities: 76.71%
|
|
|
|
|
|
Electric
utilities: 45.30% |
|
|
|
|
|
Alliant
Energy Corporation |
|
|
|
100,158
|
5,307,374
|
American
Electric Power Company Incorporated |
|
|
|
210,292
|
18,179,743
|
Constellation
Energy Corporation |
|
|
|
111,094
|
9,241,910
|
Duke
Energy Corporation |
|
|
|
207,113
|
19,265,651
|
Entergy
Corporation |
|
|
|
77,022
|
7,750,724
|
Evergy
Incorporated |
|
|
|
113,357
|
6,733,406
|
Eversource
Energy |
|
|
|
101,960
|
7,948,802
|
Exelon
Corporation |
|
|
|
380,990
|
14,271,885
|
FirstEnergy
Corporation |
|
|
|
205,868
|
7,617,116
|
NextEra
Energy Incorporated |
|
|
|
735,750
|
57,690,158
|
The accompanying notes are an integral part of these financial
statements.
10 | Allspring Utility and
Telecommunications Fund
Portfolio of
investments—September 30, 2022 (unaudited)
|
|
|
|
Shares
|
Value
|
Electric
utilities (continued) |
|
|
|
|
|
The
Southern Company |
|
|
|
246,693
|
$
16,775,124 |
Xcel
Energy Incorporated |
|
|
|
238,866
|
15,287,424
|
|
|
|
|
|
186,069,317
|
Gas
utilities: 3.41% |
|
|
|
|
|
Atmos
Energy Corporation |
|
|
|
97,312
|
9,911,227
|
ONE
Gas Incorporated |
|
|
|
58,135
|
4,092,123
|
|
|
|
|
|
14,003,350
|
Multi-utilities:
25.87% |
|
|
|
|
|
Ameren
Corporation |
|
|
|
133,679
|
10,767,843
|
CenterPoint
Energy Incorporated |
|
|
|
361,174
|
10,177,883
|
CMS
Energy Corporation |
|
|
|
208,002
|
12,114,036
|
Dominion
Energy Incorporated |
|
|
|
278,504
|
19,247,411
|
DTE
Energy Company |
|
|
|
103,797
|
11,941,845
|
Public
Service Enterprise Group Incorporated |
|
|
|
158,388
|
8,906,157
|
Sempra
Energy |
|
|
|
131,761
|
19,756,244
|
WEC
Energy Group Incorporated |
|
|
|
149,041
|
13,328,737
|
|
|
|
|
|
106,240,156
|
Water
utilities: 2.13% |
|
|
|
|
|
American
Water Works Company Incorporated |
|
|
|
67,273
|
8,756,254
|
Total
Common stocks (Cost $291,422,656) |
|
|
|
|
400,661,339
|
|
|
Yield
|
|
|
|
Short-term
investments: 2.52% |
|
|
|
|
|
Investment
companies: 2.52% |
|
|
|
|
|
Allspring
Government Money Market Fund Select Class ♠∞ |
|
2.75%
|
|
10,368,624
|
10,368,624
|
Total
Short-term investments (Cost $10,368,624) |
|
|
|
|
10,368,624
|
Total
investments in securities (Cost $301,791,280) |
100.07%
|
|
|
|
411,029,963
|
Other
assets and liabilities, net |
(0.07)
|
|
|
|
(294,373)
|
Total
net assets |
100.00%
|
|
|
|
$410,735,590
|
♠
|
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 |
The accompanying notes are an integral part of these financial
statements.
Allspring Utility and Telecommunications
Fund | 11
Portfolio of
investments—September 30, 2022 (unaudited)
Investments in
affiliates
An affiliated investment is an investment in which the
Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same investment manager. Transactions with issuers that were affiliates of the Fund at the end of
the period were as follows:
|
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 |
$2,507,848
|
$20,977,679
|
$(13,116,903)
|
$0
|
$0
|
$10,368,624
|
10,368,624
|
$43,363
|
The accompanying notes are an integral part of these
financial statements.
12 | Allspring Utility and
Telecommunications Fund
Statement of assets and
liabilities—September 30, 2022 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities, at value (cost
$291,422,656)
|
$
400,661,339 |
Investments in affiliated securities, at value (cost
$10,368,624)
|
10,368,624
|
Receivable for
dividends
|
379,992
|
Receivable for Fund shares
sold
|
96,267
|
Prepaid expenses and other
assets
|
50,134
|
Total
assets
|
411,556,356
|
Liabilities
|
|
Payable for Fund shares
redeemed
|
351,942
|
Management fee
payable
|
221,765
|
Shareholder servicing fees
payable
|
81,898
|
Administration fees
payable
|
77,757
|
Trustees’ fees and expenses
payable
|
3,970
|
Distribution fee
payable
|
3,634
|
Accrued expenses and other
liabilities
|
79,800
|
Total
liabilities
|
820,766
|
Total net
assets
|
$410,735,590
|
Net
assets consist of |
|
Paid-in
capital
|
$
265,160,575 |
Total distributable
earnings
|
145,575,015
|
Total net
assets
|
$410,735,590
|
Computation
of net asset value and offering price per share |
|
Net assets – Class
A |
$
322,687,226 |
Shares outstanding – Class
A1
|
17,428,477
|
Net asset value per share – Class
A |
$18.51
|
Maximum offering price per share – Class
A2
|
$19.64
|
Net assets – Class
C |
$
4,977,525 |
Shares outstanding – Class
C1
|
267,392
|
Net asset value per share – Class
C |
$18.62
|
Net assets – Administrator
Class
|
$
7,673,394 |
Shares outstanding – Administrator
Class1
|
413,715
|
Net asset value per share – Administrator
Class
|
$18.55
|
Net assets – Institutional
Class
|
$
75,397,445 |
Shares outstanding – Institutional
Class1
|
4,074,790
|
Net
asset value per share – Institutional
Class
|
$18.50
|
1 |
The Fund
has an unlimited number of authorized shares. |
2 |
Maximum
offering price is computed as 100/94.25 of net asset value. On investments of $50,000 or more, the offering price is reduced. |
The accompanying notes are an integral part of these financial
statements.
Allspring Utility and Telecommunications
Fund | 13
Statement of
operations—six months ended September 30, 2022 (unaudited)
|
|
Investment
income |
|
Dividends
|
$
6,242,890 |
Income from affiliated
securities
|
43,363
|
Total investment
income
|
6,286,253
|
Expenses
|
|
Management
fee
|
1,508,263
|
Administration
fees |
|
Class
A |
388,522
|
Class
C |
5,448
|
Administrator
Class
|
5,160
|
Institutional
Class
|
52,606
|
Shareholder
servicing fees |
|
Class
A |
462,526
|
Class
C |
6,477
|
Administrator
Class
|
9,922
|
Distribution
fee |
|
Class
C |
19,195
|
Custody and accounting
fees
|
10,009
|
Professional
fees
|
18,243
|
Registration
fees
|
33,948
|
Shareholder report
expenses
|
8,042
|
Trustees’ fees and
expenses
|
11,191
|
Other fees and
expenses
|
5,705
|
Total
expenses
|
2,545,257
|
Less:
Fee waivers and/or expense reimbursements |
|
Fund-level
|
(174,194)
|
Class
A |
(75,679)
|
Class
C |
(9)
|
Administrator
Class
|
(2,426)
|
Institutional
Class
|
(4,265)
|
Net
expenses
|
2,288,684
|
Net investment
income
|
3,997,569
|
Realized
and unrealized gains (losses) on investments |
|
Net realized gains on
investments
|
1,491,942
|
Net change in unrealized gains (losses) on
investments
|
(67,115,868)
|
Net realized and unrealized gains (losses) on
investments
|
(65,623,926)
|
Net decrease in net assets resulting from
operations
|
$(61,626,357)
|
The accompanying notes are an integral part of these
financial statements.
14 | Allspring Utility and
Telecommunications Fund
Statement of changes in net
assets
|
|
|
|
|
|
Six
months ended September 30, 2022 (unaudited) |
Year
ended March 31, 2022 |
Operations
|
|
|
|
|
Net investment
income
|
|
$
3,997,569 |
|
$
7,075,173 |
Net realized gains on
investments
|
|
1,491,942
|
|
34,747,201
|
Net change in unrealized gains (losses) on
investments
|
|
(67,115,868)
|
|
16,262,033
|
Net increase (decrease) in net assets resulting from
operations
|
|
(61,626,357)
|
|
58,084,407
|
Distributions
to shareholders from |
|
|
|
|
Net
investment income and net realized gains |
|
|
|
|
Class
A |
|
(3,074,828)
|
|
(44,877,027)
|
Class
C |
|
(27,743)
|
|
(572,530)
|
Administrator
Class
|
|
(75,324)
|
|
(791,404)
|
Institutional
Class
|
|
(819,739)
|
|
(9,166,657)
|
Total distributions to
shareholders
|
|
(3,997,634)
|
|
(55,407,618)
|
Capital
share transactions |
Shares
|
|
Shares
|
|
Proceeds
from shares sold |
|
|
|
|
Class
A |
368,217
|
7,738,402
|
1,015,898
|
22,075,851
|
Class
C |
87,548
|
1,810,253
|
37,936
|
829,370
|
Administrator
Class
|
93,103
|
1,960,026
|
247,879
|
5,407,252
|
Institutional
Class
|
766,571
|
16,116,842
|
1,249,622
|
26,754,319
|
|
|
27,625,523
|
|
55,066,792
|
Reinvestment
of distributions |
|
|
|
|
Class
A |
146,892
|
2,903,376
|
2,096,156
|
42,565,818
|
Class
C |
1,387
|
27,575
|
27,825
|
565,194
|
Administrator
Class
|
3,798
|
75,177
|
38,712
|
787,414
|
Institutional
Class
|
41,378
|
817,149
|
448,365
|
9,114,183
|
|
|
3,823,277
|
|
53,032,609
|
Payment
for shares redeemed |
|
|
|
|
Class
A |
(742,072)
|
(15,377,581)
|
(2,391,654)
|
(51,265,683)
|
Class
C |
(32,098)
|
(675,166)
|
(150,982)
|
(3,277,302)
|
Administrator
Class
|
(29,310)
|
(608,676)
|
(82,475)
|
(1,755,120)
|
Institutional
Class
|
(422,835)
|
(8,782,805)
|
(1,067,904)
|
(22,740,013)
|
|
|
(25,444,228)
|
|
(79,038,118)
|
Net increase in net assets resulting from capital share
transactions
|
|
6,004,572
|
|
29,061,283
|
Total increase (decrease) in net
assets
|
|
(59,619,419)
|
|
31,738,072
|
Net
assets |
|
|
|
|
Beginning of
period
|
|
470,355,009
|
|
438,616,937
|
End of
period
|
|
$410,735,590
|
|
$470,355,009
|
The accompanying notes are an integral part of these
financial statements.
Allspring Utility and Telecommunications
Fund | 15
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
A |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$21.48
|
$21.47
|
$20.19
|
$24.03
|
$20.46
|
$20.01
|
Net investment
income
|
0.18
|
0.33
|
0.34
|
0.34
|
0.32
|
0.34
|
Net realized and unrealized gains (losses) on
investments
|
(2.97)
|
2.40
|
3.82
|
0.02
|
3.65
|
0.47
|
Total from investment
operations
|
(2.79)
|
2.73
|
4.16
|
0.36
|
3.97
|
0.81
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
(0.18)
|
(0.32)
|
(0.35)
|
(0.34)
|
(0.34)
|
(0.36)
|
Net realized
gains
|
0.00
|
(2.40)
|
(2.53)
|
(3.86)
|
(0.06)
|
0.00
|
Total distributions to
shareholders
|
(0.18)
|
(2.72)
|
(2.88)
|
(4.20)
|
(0.40)
|
(0.36)
|
Net asset value, end of
period
|
$18.51
|
$21.48
|
$21.47
|
$20.19
|
$24.03
|
$20.46
|
Total
return1
|
(13.06)%
|
13.62%
|
21.23%
|
0.04%
|
19.59%
|
4.00%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.15%
|
1.16%
|
1.17%
|
1.17%
|
1.19%
|
1.17%
|
Net
expenses
|
1.03%
|
1.04%
|
1.04%
|
1.09%
|
1.14%
|
1.14%
|
Net investment
income
|
1.67%
|
1.52%
|
1.58%
|
1.42%
|
1.47%
|
1.60%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
2%
|
11%
|
20%
|
49%
|
10%
|
7%
|
Net assets, end of period (000s
omitted)
|
$322,687
|
$379,164
|
$363,540
|
$319,200
|
$337,848
|
$287,047
|
1 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
16 | Allspring Utility and
Telecommunications Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Class
C |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$21.60
|
$21.57
|
$20.25
|
$24.06
|
$20.47
|
$20.01
|
Net investment
income
|
0.10
1 |
0.17
1 |
0.17
1 |
0.16
1 |
0.16
1 |
0.13
|
Net realized and unrealized gains (losses) on
investments
|
(2.97)
|
2.40
|
3.85
|
0.01
|
3.63
|
0.52
|
Total from investment
operations
|
(2.87)
|
2.57
|
4.02
|
0.17
|
3.79
|
0.65
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
(0.11)
|
(0.14)
|
(0.17)
|
(0.12)
|
(0.14)
|
(0.19)
|
Net realized
gains
|
0.00
|
(2.40)
|
(2.53)
|
(3.86)
|
(0.06)
|
0.00
|
Total distributions to
shareholders
|
(0.11)
|
(2.54)
|
(2.70)
|
(3.98)
|
(0.20)
|
(0.19)
|
Net asset value, end of
period
|
$18.62
|
$21.60
|
$21.57
|
$20.25
|
$24.06
|
$20.47
|
Total
return2
|
(13.34)%
|
12.75%
|
20.34%
|
(0.73)%
|
18.65%
|
3.24%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.89%
|
1.90%
|
1.91%
|
1.92%
|
1.94%
|
1.92%
|
Net
expenses
|
1.80%
|
1.80%
|
1.80%
|
1.86%
|
1.89%
|
1.89%
|
Net investment
income
|
0.91%
|
0.77%
|
0.80%
|
0.63%
|
0.74%
|
0.85%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
2%
|
11%
|
20%
|
49%
|
10%
|
7%
|
Net assets, end of period (000s
omitted)
|
$4,978
|
$4,548
|
$6,379
|
$10,274
|
$19,618
|
$41,729
|
1 |
Calculated
based upon average shares outstanding |
2 |
Total
return calculations do not include any sales charges. Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Utility and Telecommunications
Fund | 17
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Administrator
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$21.52
|
$21.51
|
$20.22
|
$24.05
|
$20.48
|
$20.03
|
Net investment
income
|
0.19
|
0.37
|
0.37
|
0.36
|
0.36
|
0.37
|
Net realized and unrealized gains (losses) on
investments
|
(2.97)
|
2.39
|
3.83
|
0.04
|
3.65
|
0.48
|
Total from investment
operations
|
(2.78)
|
2.76
|
4.20
|
0.40
|
4.01
|
0.85
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
(0.19)
|
(0.35)
|
(0.38)
|
(0.37)
|
(0.38)
|
(0.40)
|
Net realized
gains
|
0.00
|
(2.40)
|
(2.53)
|
(3.86)
|
(0.06)
|
0.00
|
Total distributions to
shareholders
|
(0.19)
|
(2.75)
|
(2.91)
|
(4.23)
|
(0.44)
|
(0.40)
|
Net asset value, end of
period
|
$18.55
|
$21.52
|
$21.51
|
$20.22
|
$24.05
|
$20.48
|
Total
return1
|
(12.97)%
|
13.76%
|
21.39%
|
0.20%
|
19.80%
|
4.21%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
1.07%
|
1.08%
|
1.09%
|
1.09%
|
1.11%
|
1.09%
|
Net
expenses
|
0.92%
|
0.92%
|
0.92%
|
0.94%
|
0.95%
|
0.95%
|
Net investment
income
|
1.79%
|
1.63%
|
1.70%
|
1.49%
|
1.66%
|
1.80%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
2%
|
11%
|
20%
|
49%
|
10%
|
7%
|
Net assets, end of period (000s
omitted)
|
$7,673
|
$7,447
|
$3,054
|
$2,449
|
$5,296
|
$4,702
|
1 |
Returns for
periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
18 | Allspring Utility and
Telecommunications Fund
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended March 31 |
Institutional
Class |
Six
months ended September 30, 2022 (unaudited) |
2022
|
2021
|
2020
|
2019
|
2018
|
Net asset value, beginning of
period
|
$21.46
|
$21.46
|
$20.18
|
$24.01
|
$20.45
|
$20.00
|
Net investment
income
|
0.21
|
0.40
|
0.43
|
0.44
|
0.41
|
0.41
|
Net realized and unrealized gains (losses) on
investments
|
(2.96)
|
2.39
|
3.80
|
0.01
|
3.62
|
0.47
|
Total from investment
operations
|
(2.75)
|
2.79
|
4.23
|
0.45
|
4.03
|
0.88
|
Distributions
to shareholders from |
|
|
|
|
|
|
Net investment
income
|
(0.21)
|
(0.39)
|
(0.42)
|
(0.42)
|
(0.41)
|
(0.43)
|
Net realized
gains
|
0.00
|
(2.40)
|
(2.53)
|
(3.86)
|
(0.06)
|
0.00
|
Total distributions to
shareholders
|
(0.21)
|
(2.79)
|
(2.95)
|
(4.28)
|
(0.47)
|
(0.43)
|
Net asset value, end of
period
|
$18.50
|
$21.46
|
$21.46
|
$20.18
|
$24.01
|
$20.45
|
Total
return1
|
(12.88)%
|
13.94%
|
21.62%
|
0.42%
|
20.03%
|
4.38%
|
Ratios
to average net assets (annualized) |
|
|
|
|
|
|
Gross
expenses
|
0.82%
|
0.83%
|
0.84%
|
0.84%
|
0.86%
|
0.84%
|
Net
expenses
|
0.72%
|
0.72%
|
0.72%
|
0.75%
|
0.78%
|
0.78%
|
Net investment
income
|
2.00%
|
1.84%
|
1.92%
|
1.76%
|
1.83%
|
1.95%
|
Supplemental
data |
|
|
|
|
|
|
Portfolio turnover
rate
|
2%
|
11%
|
20%
|
49%
|
10%
|
7%
|
Net assets, end of period (000s
omitted)
|
$75,397
|
$79,196
|
$65,644
|
$45,888
|
$42,427
|
$31,548
|
1 |
Returns for
periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial
statements.
Allspring Utility and Telecommunications
Fund | 19
Notes to financial statements
(unaudited)
1. ORGANIZATION
Allspring Funds Trust (the "Trust"), a Delaware statutory trust
organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As an investment company, the Trust follows the accounting and reporting guidance in
Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Allspring Utility and
Telecommunications Fund (the "Fund") which is a non-diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles 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.
Investments which are not
valued using the methods discussed above are valued at their fair value, as determined in good faith by Allspring Funds Management, LLC ("Allspring Funds Management"), which was named the valuation designee by the Board of Trustees. As the valuation
designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the
authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities. On a quarterly basis, the Board of Trustees
receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis, the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management's process for determining the fair
value of the portfolio of investments.
Security
transactions and income recognition
Securities transactions are recorded
on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date.
Distributions 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.
20 | Allspring Utility and
Telecommunications Fund
Notes to financial statements
(unaudited)
As of September 30, 2022, the aggregate cost of all investments
for federal income tax purposes was $301,791,280 and the unrealized gains (losses) consisted of:
Gross
unrealized gains |
$121,166,197
|
Gross
unrealized losses |
(11,927,514)
|
Net
unrealized gains |
$109,238,683
|
Class allocations
The separate classes of shares offered by the Fund differ principally in
applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on
investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities |
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of September 30, 2022:
|
Quoted
prices (Level 1) |
Other
significant observable inputs (Level 2) |
Significant
unobservable inputs (Level 3) |
Total
|
Assets |
|
|
|
|
Investments
in: |
|
|
|
|
Common
stocks |
|
|
|
|
Communication
services |
$
20,916,536 |
$0
|
$0
|
$
20,916,536 |
Consumer
discretionary |
8,346,872
|
0
|
0
|
8,346,872
|
Financials
|
4,156,174
|
0
|
0
|
4,156,174
|
Health
care |
14,498,105
|
0
|
0
|
14,498,105
|
Information
technology |
23,607,002
|
0
|
0
|
23,607,002
|
Real
estate |
14,067,573
|
0
|
0
|
14,067,573
|
Utilities
|
315,069,077
|
0
|
0
|
315,069,077
|
Short-term
investments |
|
|
|
|
Investment
companies |
10,368,624
|
0
|
0
|
10,368,624
|
Total
assets |
$411,029,963
|
$0
|
$0
|
$411,029,963
|
Additional sector, industry or
geographic detail, if any, is included in the Portfolio of Investments.
For the six months ended September 30, 2022, the Fund did not
have any transfers into/out of Level 3.
Allspring Utility and Telecommunications
Fund | 21
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 |
0.650%
|
Next
$500 million |
0.600
|
Next
$1 billion |
0.550
|
Next
$2 billion |
0.525
|
Next
$1 billion |
0.500
|
Next
$5 billion |
0.490
|
Over
$10 billion |
0.480
|
For the six months ended September
30, 2022, the management fee was equivalent to an annual rate of 0.65% of the Fund’s average daily net assets.
Allspring Funds Management has retained the services of a
subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC, an affiliate of Allspring Funds Management and a wholly owned subsidiary of
Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is entitled to receive a fee from Allspring Funds Management at an annual rate starting at 0.30% and declining to 0.20% as the average daily net assets of the Fund
increase.
Administration fees
Under a class-level administration agreement, Allspring Funds Management
provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under
the class-level administration agreement, Allspring Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
|
Class-level
administration fee |
Class
A |
0.21%
|
Class
C |
0.21
|
Administrator
Class |
0.13
|
Institutional
Class |
0.13
|
Waivers and/or expense
reimbursements
Allspring Funds Management has contractually committed to
waive and/or reimburse management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Allspring Funds Management will waive fees
and/or reimburse expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before
fund-level expenses. Allspring Funds Management has contractually committed through July 31, 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
22 | Allspring Utility and
Telecommunications Fund
Notes to financial statements
(unaudited)
caps may be terminated only with the approval of the Board of Trustees. As of
September 30, 2022, the contractual expense caps are as follows:
|
Expense
ratio caps |
Class
A |
1.05%
|
Class
C |
1.80
|
Administrator
Class |
0.92
|
Institutional
Class |
0.72
|
Distribution fee
The Trust has adopted a distribution plan for Class C shares pursuant to Rule
12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Allspring Funds Distributor, LLC ("Allspring Funds Distributor"), the principal underwriter, an affiliate of Allspring Funds Management, at an annual rate of 0.75%
of the average daily net assets of Class C shares.
In
addition, Allspring Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Allspring Funds Distributor is also
entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the six months ended September 30, 2022, Allspring Funds Distributor received $5,130 from the sale of Class A shares. No contingent deferred sales
charges were incurred by Class A and Class C shares for the six months ended September 30, 2022.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing
agents, whereby Class A, Class C and Administrator Class are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class. A portion of these total shareholder servicing fees were paid to affiliates.
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 September 30, 2022 were $8,962,540 and $7,136,215, respectively.
6. BANK BORROWINGS
The Trust (excluding the money market funds), Allspring Master
Trust and Allspring Variable Trust 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 or the overnight bank funding rate in effect on that day plus a spread. In addition, an annual commitment fee equal based on the unused
balance is allocated to each participating fund.
For the six months ended September 30, 2022, there were no
borrowings by the Fund under the agreement.
7.
CONCENTRATION RISKS
The Fund concentrated its portfolio
of investments in the utility sector. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.
8. 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
Allspring Utility and Telecommunications
Fund | 23
Notes to financial statements
(unaudited)
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.
9. 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.
24 | Allspring Utility and
Telecommunications 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 1-800-222-8222, 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 Utility and Telecommunications
Fund | 25
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 124 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
|
26 | Allspring Utility and
Telecommunications 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. Vice Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member
of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. Senior Fellow of the University of Minnesota Humphrey Institute from 1995 to 2017. |
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 |
Retired.
Executive and Senior Financial leadership positions in the public, private and nonprofit sectors. Interim President and CEO, McKnight Foundation, 2020. Interim Commissioner, Minnesota Department of Human Services, 2019. Chief Operating Officer,
Twin Cities Habitat for Humanity, 2017-2019. Vice President for University Services, University of Minnesota, 2012-2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive Vice-President and Chief Financial
Officer, Minnesota Wild, 2002-2008. Commissioner, Minnesota Department of Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation. |
N/A
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Utility and Telecommunications
Fund | 27
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
and Chief Executive Officer of Allspring Funds Management, LLC since 2017 and Head of Global Fund Governance of Allspring Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring
Funds Management, LLC, from 2019 to 2022 and 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. |
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.
|
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) |
Chief
Legal Officer, since 2022; 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.
28 | Allspring Utility and
Telecommunications 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 Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series (other than the series that
operate as money market funds), 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 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 Utility and Telecommunications
Fund | 29
For more information
More information about Allspring Funds is available free upon
request. To obtain literature, please write, visit the Fund's website, or call:
Allspring Funds
P.O. Box 219967
Kansas City, MO
64121-9967
Website:
allspringglobal.com
Individual investors: 1-800-222-8222
Retail investment
professionals: 1-888-877-9275
Institutional investment professionals:
1-800-260-5969
This report and
the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus.
Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call
1-800-222-8222 or visit the Fund's website at allspringglobal.com. Read the prospectus carefully before you invest or send money.
Allspring Global
InvestmentsTM is the trade name for the asset management firms of Allspring Global Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR
LLC and Reverence Capital Partners, L.P. These firms include but are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a recommendation for any specific investment, strategy, or plan.
© 2022 Allspring Global Investments Holdings, LLC. All
rights reserved.
PAR-1022-00385 11-22
SA318/SAR318 09-22
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES
AND SERVICES
Not applicable.
ITEM 5. AUDIT
COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for each
series of Allspring Funds 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 registrants Board of Trustees that have been
implemented since the registrants 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 Funds Trust disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons, based on their evaluation of
these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrants
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 registrants internal control over financial reporting.
ITEM 12.
DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS
(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.
|
|
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Allspring Funds Trust |
|
|
By: |
|
/s/Andrew Owen |
|
|
Andrew Owen |
|
|
President |
|
Date: November 22, 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 Funds Trust |
|
|
By: |
|
/s/Andrew Owen |
|
|
Andrew Owen |
|
|
President |
Date: November 22, 2022 |
|
|
|
By: |
|
/s/Jeremy DePalma |
|
|
Jeremy DePalma |
|
|
Treasurer |
Date: November 22, 2022 |