Allspring Global Investments has launched a fixed income fund investing in global best-in-class companies transitioning to a lower-carbon world.
The Allspring (Lux) Worldwide Climate Transition Global Buy and Maintain fund will use proprietary climate transition credit research to deliver a portfolio that balances financial and climate considerations.
It is suitable for institutional investors who are seeking to reduce the carbon intensity of their investments with a focus on a clear path to net zero by 2050.
The fund, which has already gathered $100m in assets since a soft launch in August, seeks to deliver investment income whilst preserving capital, is classified as SFDR Article 8 and is registered for distribution in Luxembourg, Switzerland and the UK.
It will be managed by Henrietta Pacquement, head of both the global fixed income and sustainable investing teams, who also leads Allspring’s fixed income climate transition offering, alongside Alex Temple, Scott Smith, and Jonathan Terry.
Pacquement said 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.
“I have been saying all year that last year’s correction creates this year’s opportunity, and the launch of this new fund could not be better timed,” she said.
Allspring’s research and resources around sustainability and climate research “can add significant further value to our clients in this evolving area”, she added.
Catherine McLaughlin, head of UK and Ireland institutional, said following the rapid rise in yields in 2022, Allspring’s 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 that provides a combination of income to meet cash flow needs, net-zero aligned to meet climate goals and credit to provide attractive yield,” she said.
Allspring has two related climate transition funds: the Allspring Climate Transition Global High Yield fund was introduced on 7 June 2023 and the Allspring Climate Transition Global Investment Grade Credit fund was introduced on 23 August 2021.