Allspring launches low-carbon fixed income fund

The high-yield strategy has a portfolio target of net zero by 2050

Allspring Global Investments has launched its second fixed income fund, aiming to support the transition to a low-carbon economy.

The Allspring Global High Yield Fund, which is classified under SFDR as Article 8, will be managed by the firm’s Plus Fixed Income team and led by managers Mike Schueller, Jens Vanbrabant, Chris Lee and Sarah Harrison.

Allspring said the fund aims to deliver exposure to global high-yield fixed income opportunities, investing in “best-in-class” companies that are targeting net zero by 2050.

It aims to generate total returns through both income and capital appreciation, investing two-thirds of assets in debt securities rated below investment grade. The fund can invest no more than 10% of net assets in unrated or lowest rated categorised debt securities.

See also: Article 9 ETFs underperform Article 8 counterparts on SFDR indicators

Andy Sowerby, Allspring’s head of international distribution, said: “This year there have been two themes that have dominated our client conversations. One has been the heightened interest in fixed income assets with current yields providing an attractive entry point for new capital. The second is the ongoing challenge of decarbonising fixed income portfolios.

“Whilst many have already undertaken this move across equity holdings, fixed income portfolios are increasingly at the top of the to-do list.”

Allspring also offers the Climate Transition Global Investment Grade Credit Fund, which was launched on 1 January 2021.

This article first appeared on ESG Clarity’s sister title Portfolio Adviser