Allspring Core Plus Bond Investment Strategy and Returns

The Allspring Core Plus Bond investment strategy is designed to provide a high level of liquidity and income while managing risk.

This strategy focuses on investing in high-quality bonds with a mix of short- and long-term maturities to balance risk and return.

The fund's objective is to generate returns that are comparable to short-term bonds, but with a slightly higher yield.

By investing in a diversified portfolio of bonds, the fund aims to reduce risk and provide a stable source of income for investors.

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The Allspring Core Plus Bond Fund is a solid investment option for those looking to diversify their portfolio. It was launched on October 31, 2016.

The fund's inception date is a key factor in determining its performance over time. As of the inception date, the fund has had over 7 years to establish a track record.

The fund's shares are denominated in USD and are domiciled in the US. This is a common practice for investment funds to ensure liquidity and ease of trading.

The fund's manager is Janet Rilling, who brings her expertise to the table in guiding the fund's investment strategy.

Here are the fund's details in a concise format:

Performance metrics are a crucial aspect of evaluating the allspring core plus bond fund's performance. The fund has an alpha of 0.54, 1.53, and 12.80 for the 3-year, 5-year, and 10-year periods, respectively.

The fund's beta is relatively stable, ranging from 1.01 to 1.03 over the same periods. This suggests that the fund's returns have been closely tied to the overall market.

Here's a summary of the fund's performance metrics:

The fund's average annual returns are also noteworthy, with a 1-year return of 3.09% and a 5-year return of 0.89%. The fund's Sharpe ratio, which measures risk-adjusted returns, is -0.67, -0.25, and 0.12 for the 3-year, 5-year, and 10-year periods, respectively.

Average annual returns are a key performance metric for investors. The data shows that over the past 10 years, the fund has had an average annual return of 2.49%, while the Bloomberg U.S. Aggregate Bond Index had an average annual return of 1.19%.

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The fund's 1-year return was 3.09%, which is higher than the 2.07% return of the Bloomberg U.S. Aggregate Bond Index. However, the fund's 3-year return was -1.00%, which is lower than the -1.52% return of the Bloomberg U.S. Aggregate Bond Index.

Here are the average annual returns for the fund and the Bloomberg U.S. Aggregate Bond Index over different time periods:

The fund's average annual returns vary over different time periods, but it's essential to note that past performance is not a guarantee of future results.

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The Sharpe Ratio is a performance metric that helps investors understand the risk-adjusted returns of an investment. It's calculated by dividing the excess return of the investment by its standard deviation.

In the context of the Allspring Core Plus Bond Fund, the Sharpe ratio is 1.09, based on the past 1 year of trading data. This value takes into account price changes and dividends.

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A Sharpe ratio of 1.09 suggests that the fund has generated returns that are significantly higher than its benchmark, while also managing to keep risks in check.

Here's a comparison of the Sharpe ratios for the Allspring Core Plus Bond Fund over different time periods:

As you can see, the Sharpe ratio has improved significantly over the 10-year period, indicating that the fund's returns have become more stable and consistent.

In general, a higher Sharpe ratio is better, as it indicates that the investment is generating returns that are more than just a result of taking on excessive risk.

The Allspring Core Plus Bond Fund has a 3-year alpha of 0.54, indicating a moderate level of outperformance compared to the market.

The fund's beta, which measures its volatility relative to the market, is 1.01 over the same period, suggesting a slightly higher level of risk-taking.

The excess return of 0.52 over 3 years shows that the fund has generated returns that are 0.52% higher than the market.

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The information ratio of 0.54 over 3 years indicates that the fund's excess return is 0.54% higher than its tracking error.

The Sharpe ratio of -0.67 over 3 years suggests that the fund's returns have not been sufficient to compensate for its volatility.

The R2 of 0.98 over 3 years indicates a very high correlation between the fund's returns and the market's returns.

Here are some key volatility metrics for the Allspring Core Plus Bond Fund:

The current Allspring Core Plus Bond Fund volatility is 1.19%, representing the average percentage change in the investment's value over the past month.

The Allspring Core Plus Bond fund invests at least 80% of its assets in a mix of high-quality, short-term and long-term bonds and other debt securities.

Investors can expect a relatively stable return, with an average annual return of around 3.5% over the past 10 years.

The fund aims to maintain a relatively stable net asset value, with a low volatility of around 3% over the past 10 years.

It's worth noting that the fund's investment approach is designed to provide a steady income stream, with a focus on preserving capital.

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The allspring core plus bond fund has a significant concentration in its portfolio. The fund holds 791 stocks, which is a relatively large number compared to some of its peers.

Breaking down the fund's holdings, we see that its net assets are approximately $5.7 billion, which is a substantial amount. In comparison, the category low is $2.9 million, while the category high is $314 billion.

The fund's weighting of its top 10 holdings is also noteworthy, with a total of $1.25 billion in net assets and a weighting of 17.07% of the fund's total assets.

Let's take a closer look at the top holdings of STYJX, a fund that's caught my attention. Its top holding is ALLSPRING GOVERNMENT MONEY MAR, making up 4.14% of the fund's portfolio.

Among the top 10 holdings, we see a mix of government-backed securities, including Ginnie Mae, U.S. Treasury Notes, and U.S. Treasury Bonds. These types of investments are often considered stable and low-risk.

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The top 10 holdings of STYJX are as follows:

It's worth noting that U.S. Treasury Bonds make up a significant portion of the top 10 holdings, with two different types of bonds appearing in the list.

Asset Allocation is a crucial aspect of portfolio composition, and it's interesting to see how different asset classes contribute to the overall performance of a portfolio.

Bonds are the dominant asset class in this portfolio, making up 88.02% of the allocation. This is a relatively conservative approach, as bonds are generally considered to be lower-risk investments.

The return on bonds can range from 0.00% to 9231.88%, depending on the specific investment. This wide range highlights the importance of diversification in a portfolio.

Other assets, such as cash and convertible bonds, also play a significant role in this portfolio. Cash accounts for 5.57% of the allocation, while convertible bonds make up 2.45%.

These assets tend to be more volatile than bonds, with returns ranging from -54.51% to 1695.17% for cash, and 0.00% to 7.93% for convertible bonds.

Stocks and preferred stocks are present in the portfolio, but to a much lesser extent. Stocks make up only 0.33% of the allocation, while preferred stocks are not allocated at all.

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In the Bond Geographic Breakdown, we see a significant weighting towards the US market, with 79.42% of the portfolio allocated to US bonds.

The US portion of the portfolio has a return range of 0.00% to 9042.62%, which is a substantial difference from the Non US portion.

Non US bonds make up a smaller portion of the portfolio, with 8.61% allocated to this market.

The Non US bonds have a return range of 0.00% to 189.26%, which is much lower than the US portion.

Here's a breakdown of the geographic allocation:

The fees and expenses associated with Allspring Core Plus Bond C are worth understanding. The fund's expense ratio is high compared to its category average, coming in at 1.42%.

This high expense ratio can reduce your rate of return, making it essential to consider the impact of costs on your investments. The fund's portfolio turnover rate is 168%, which can also contribute to higher expenses.

Here's a breakdown of the fund's fees and expenses:

It's essential to compare fund expense ratios against category averages for meaningful assessments.

Assets Under Management is a crucial factor to consider when evaluating a fund's fees and expenses. The fund in question has $54 million in total assets, which is below the $1 billion average for its category.

This lower asset base can have both positive and negative effects on the fund. On the one hand, it may result in higher average expense ratios, which can eat into your returns. On the other hand, it can make it easier for the manager to implement their strategy without the burden of managing too much money.

The fund has a relatively small team of managers, with only 5 individuals overseeing its investments. This smaller team may be beneficial in terms of costs, but it's essential to consider whether it's sufficient to manage the fund effectively.

Here are the key facts about the fund's management team:

The expense ratio of WFIPX is high compared to funds in the Intermediate Core-Plus Bond category, at 1.42%, which is 81% higher than its category average. This makes the fund's expense ratio grade a F.

High annual expense ratios can reduce your rate of return, and excessive fees can be difficult to overcome. Active management normally comes with higher expense ratios than passive index management.

The average portfolio turnover rate for WFIPX is 168%, which is lower than the category average of 229%. This lower turnover rate may result in lower expenses and higher after-tax returns.

Here's a breakdown of WFIPX's fees:

Keep in mind that high portfolio turnover can also lead to higher expenses and lower after-tax returns.

The Allspring Core Plus Bond Fund has been consistently paying out dividends to its investors. In fact, it has been increasing its distributions for 3 consecutive years.

The fund's dividend yield has ranged from 1.60% in 2021 to 4.59% in 2024, with an average yield of around 3% over the past few years.

Here's a breakdown of the fund's monthly dividend distributions for the past few years:

The fund's annual payout has also been steadily increasing, from $0.21 per share in 2021 to $0.51 per share in 2024.

The Allspring Core Plus Bond C is an actively managed Taxable Bond Intermediate Core-Plus Bond fund that seeks total return, consisting of current income and capital appreciation. It was launched in 1998 by Allspring Global Investments.

The fund invests at least 80% of its net assets in debt securities, which can include corporate, mortgage- and asset-backed securities, bank loans, foreign sovereign debt, supranational agencies, and U.S. government obligations.

The management team of the fund has an impressive average tenure of 9.50 years, with 5 members having a combined experience of over 40 years. This is more important for actively managed funds like Core Plus Bond C.

The fund has a primary benchmark: the Bloomberg US Agg Bond TR USD index, which it aims to beat with its investment strategy. The top 10 holdings in the fund's portfolio constitute 30.3% of the fund's assets.

The fund's portfolio is diversified, with 843 securities held, and it meets the SEC requirement for being classified as a diversified fund. The bond allocation as a percentage of total assets is 88.7%, with 77.4% of that being domestic bond, 11.3% foreign bond, and 0.2% convertible bond.

Here's a breakdown of the fund's asset allocation:

The fund has a significant allocation to foreign issues, with 11.4% of its portfolio invested in foreign debt securities.