Fund Management
Allspring Launches Third Climate Transition Bond Fund
The firm said weak prices of bonds meant this asset class presented attractive investment opportunities.
Allspring
Global Investments has launched its third climate transition
fixed income fund - the Allspring (Lux) Worldwide Climate
Transition Global Buy and Maintain Fund.
The US-headquartered firm is rolling out the fund at a time when
market conditions create a more attractive entry points for the
market, it said in a press release.
The new fund is managed by Henrietta Pacquement; Alex Temple;
Scott Smith, and Jonathan Terry.
“After more than a decade of depressed yields, investors are now
able to take advantage of much more constructive market
conditions to build diversified exposure to high-quality
credits”, Pacquement said.
“Following the rapid rise in yields in 2022, our UK institutional
clients are increasingly de-risking their portfolios, resulting
in a larger focus on quality fixed income assets. We have worked
with both clients and consultants to design this solution,”
Catherine MLaughlin, head of UK and Ireland Institutional,
added.
This fund’s approach is to deliver exposure to global fixed
income opportunities focused on best-in-class companies
transitioning to a lower-carbon world. This new investment
solution uses Allspring’s proprietary climate transition credit
research framework to deliver a portfolio that balances financial
and climate considerations.
The fund is registered for distribution in Luxembourg,
Switzerland, and the UK.
Allspring is not alone in seeing high emerging market bond yields
as an attractive entry point. A few days ago, Schroders said that
high yields, sometimes in double digits, coupled with a weaker
dollar, offered the chance to grab equity-like returns, but
without the degree of downgrade or default risk seen in US
high-yield credit markets.
Allspring has two related climate transition funds: the Allspring
Climate Transition Global High Yield Fund (introduced on 7 June
2023) and the Allspring Climate Transition Global Investment
Grade Credit Fund (23 August 2021).
