Allspring Muni Bond Fund Details and Investment Analysis

The Allspring Muni Bond Fund is a type of investment that focuses on municipal bonds, which are debt securities issued by local governments and other public entities to finance projects.

It's a relatively low-risk investment option, with a focus on providing regular income through interest payments.

The fund's investment objective is to provide a high level of current income that is exempt from federal income tax, while also preserving capital.

This is achieved by investing in a diversified portfolio of municipal bonds with varying credit qualities and maturities.

The Allspring Short-Term Municipal Bond Fund has a legal name that clearly identifies it, and that name is Allspring Short-Term Municipal Bond Fund.

The fund is part of the Allspring Funds family, which is a reputable and well-established name in the investment world.

The fund was launched on July 31, 2018, so it's still a relatively new player in the market.

The fund's share class is R6, which is a specific type of share that investors can purchase.

The fund is denominated in US dollars, making it accessible to investors who hold or want to hold US dollars.

The fund is domiciled in the US, which means it's subject to US regulations and laws.

Here's a quick rundown of the fund's key details:

The Allspring Municipal Bond Fund has a below-average expense ratio of 0.38%, which is 52% lower than its category average. This means investors can expect to keep more of their returns.

The fund's portfolio turnover rate is a relatively low 15%, indicating that it holds its assets for a longer period. This can help reduce expenses and potentially improve aftertax returns.

In January 2025, the fund returned 0.1%, earning it a grade of F, as the Muni National Long category had an average return of 0.3%. The letter grades are based on relative rankings within the investment category.

Here's a comparison of the fund's returns against its category averages:

*Annualized

The fund's average annual returns are as follows:

Note that one-month, three-month, and year-to-date returns are not annualized.

The Allspring Strategic Municipal Bond Fund has a current volatility of 0.62%, which is relatively low. This means the fund's value has only fluctuated by an average of 0.62% over the past month, either up or down.

The fund's 3-year, 5-year, and 10-year standard deviations are 4.09%, 3.86%, and 2.90%, respectively. These numbers give us an idea of the fund's historical volatility over different time periods.

Here's a breakdown of the fund's volatility metrics over different time periods:

The Sharpe ratio is a metric that helps investors understand the relationship between risk and return. It's calculated by dividing the excess return of an investment by its standard deviation.

A higher Sharpe ratio typically indicates better risk-adjusted performance. For example, the Allspring Strategic Municipal Bond Fund has a Sharpe ratio of 1.83, which suggests it has generated strong returns relative to its risk.

However, the Sharpe ratio can be influenced by market conditions. For instance, a Sharpe ratio of -0.64 over a 3-year period indicates that the investment has underperformed its benchmark, suggesting a higher risk profile.

The Sharpe ratio can be compared across different time periods to gauge an investment's consistency. The Allspring Strategic Municipal Bond Fund's Sharpe ratio has ranged from -0.64 to 1.83 over the past 3-10 years, indicating varying levels of risk-adjusted performance.

Here are some Sharpe ratios for a specific investment over different time periods:

Keep in mind that a Sharpe ratio is just one tool to evaluate an investment's performance. It's essential to consider other metrics, such as alpha and beta, to get a comprehensive picture.

The Allspring Strategic Municipal Bond Fund has experienced some significant drawdowns in the past, with the maximum drawdown being 8.47%.

This occurred on October 25, 2022, and took 420 trading sessions to recover from. The current drawdown is a relatively small 0.51%.

Drawdowns can be a major concern for investors, as they indicate a significant reduction in portfolio value. The longer it takes to recover from a drawdown, the more risk it poses to an investment.

The table below shows the worst drawdowns experienced by the Allspring Strategic Municipal Bond Fund:

These drawdowns can be a significant concern for investors, and it's essential to understand the risks involved in any investment.

The Allspring Municipal Bond R6 fund has an expense ratio of 0.38%, which is 52% lower than its category average. This makes the fund's expense ratio grade an A.

The fund's expense ratio is made up of several components, including the management fee, which is 0.34% of the fund's assets under management (AUM). This is a relatively low fee compared to other funds in the same category.

The administrative fee, which is 0.03% of AUM, is also relatively low. This suggests that the fund is managed efficiently.

Here's a breakdown of the fund's operational fees:

High portfolio turnover can translate to higher expenses and lower after-tax returns. However, the Allspring Municipal Bond R6 fund has a portfolio turnover rate of 15%, which is lower than the average portfolio turnover rate of 34% for the Muni National Long category.

The Allspring Municipal Bond R6 fund has a diverse portfolio, holding 1.53 billion dollars in net assets and 717 securities. This number of holdings is significantly higher than the category low of 4 securities, but lower than the category high of 14,014.

The fund's top 10 holdings constitute 6.0% of the fund's assets, with the top holding being the Michigan ST Strategic Fund Ltd Oblg Revenue, making up 8.62% of the fund's weighting. The fund's top 10 holdings are also notable for being mostly revenue bonds, with a few exceptions.

Here is a breakdown of the fund's top 10 holdings, ranked by their percentage of the fund's assets:

Allspring Municipal Bond R6 has $1 billion in total assets, which is above the $898 million average for the Muni National Long category.

This is a significant advantage, as having more assets under management can lead to lower average expense ratios.

The fund normally distributes its dividend income monthly, and currently has a trailing dividend yield of 3.44%, which is above the 3.44% category average.

The fund's assets under management are substantial, but it's worth noting that for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

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

Let's take a closer look at the top holdings in our portfolio.

The Michigan State Strategic Fund Ltd Obligations Revenue bond tops the list at 1.13%, followed closely by Wisconsin State Health Educational Facilities Authority Revenue bond at 1.09%.

The top 10 holdings in our portfolio are a mix of revenue bonds from various states.

Here are the top 10 holdings in our portfolio:

These bonds are a significant part of our portfolio, with the top 10 holdings accounting for 8.62% of our total net assets.

The bond geographic breakdown of a fund can tell you a lot about its investment strategy and risk profile. The Allspring Municipal Bond R6 fund, for example, has a bond geographic breakdown that's primarily made up of US investments.

According to the fund's data, 98.46% of its assets are invested in the US. This means that the majority of the fund's holdings are domestic, and it's likely that the fund is focused on investing in municipal bonds issued by US states and local governments.

In contrast, the fund has very little invested in non-US countries, with only 0.00% of its assets allocated to foreign investments. This suggests that the fund is not taking on much international risk, and is instead focusing on the US market.

Here's a breakdown of the fund's bond geographic allocation:

This allocation can be useful for investors who want to know how their fund is invested and what kind of risks they're taking on. It's also a good starting point for further research and analysis of the fund's performance and strategy.

The Allspring Strategic Municipal Bond Fund has delivered a return of 0.29% year-to-date (YTD) and 4.16% in the last 12 months.

Over the past 10 years, the fund had an annualized return of 1.74%, while the S&P 500 had an annualized return of 11.32%, indicating that the fund did not perform as well as the benchmark.

The fund has been increasing its distributions for 3 consecutive years, with a 3.38% dividend yield over the last twelve months. This is a notable trend that investors may find attractive.

Here's a breakdown of the fund's dividend history:

The Return Trailing Ranking section of a fund's report is a crucial piece of information that helps investors understand how their investment is performing compared to others in the same category. It's a ranking that shows where the fund stands in terms of returns, and it's usually expressed as a percentage.

For example, let's take a look at the Allspring Strategic Municipal Bond Fund, which had a YTD return of 0.4% and a 1-year return of 3.3%. According to the Return Ranking - Trailing table, the fund ranked 61.40% in its category for YTD returns and 18.96% for 1-year returns.

Here's a breakdown of the fund's trailing returns and rankings over different periods:

As you can see, the fund's returns have been relatively stable over the past few years, but it's still important to note that past performance is no guarantee of future results. It's always a good idea to do your own research and consult with a financial advisor before making any investment decisions.

When evaluating a company's financial health, one key metric to consider is the net income ratio. For WSSRX, this ratio stands at 1.48%.

The net income ratio can give us an idea of a company's profitability. In the case of WSSRX, its net income ratio is significantly higher than the Category Low of -0.53%.

However, it's worth noting that WSSRX's net income ratio is still lower than the Category High of 5.33%. This suggests that there may be room for improvement in terms of profitability.

Here's a comparison of WSSRX's net income ratio to its category peers:

WSSRX's net income ratio ranks 72.79% in its category, indicating that it falls below the median. This could be a concern for investors looking for a more profitable company.

The Allspring Municipal Bond fund has received a grade of F for its year-to-date performance, returning 0.1%, which is 0.2 percentage points worse than its category.

The fund's past performance is a mixed bag, with a grade of C for the past year, 2.5%, and a grade of A for the past three years, 0.7%. Over the past five years, the fund has returned 0.8% per year, earning a grade of B.

Here's a breakdown of the fund's grades over the past few years:

The fund's performance is also compared to its category, with a +/- category of -0.2% for the year, indicating that it underperformed its category.

The fund's risk measures show that it has a standard deviation of 6.5%, a total risk index of 0.44, and a category risk index of 0.75, both of which are considered low.

The fund's bond investment style is described as high quality, with extensive sensitivity, and it has a yield of 3.4% and a dividend distribution of monthly.

The Allspring Strategic Municipal Bond Fund has seen significant price fluctuations over the years. Its YTD high was $9.77 on February 6, 2025, while the YTD low was $9.63 on January 14, 2025.

The fund's 52-week high was $9.92 on October 3, 2024, and its 52-week low was $9.63 on January 14, 2025. You can see that the 52-week high and low are the same as the YTD high and low, indicating a relatively stable market.

The fund has provided a 3.38% dividend yield over the last twelve months, with an annual payout of $0.30 per share. This dividend yield has been increasing over the past few years, making it an attractive option for income investors.

Here's a summary of the fund's dividend history:

Historical prices are a great way to gauge the performance of an investment over time.

The highest price reached in the past year was $9.92 on October 3, 2024.

You can also look at the 52-week high, which was also $9.92 on the same date.

The lowest price reached in the past year was $9.63 on January 14, 2025.

Interestingly, the same price was also the 52-week low, indicating a relatively stable range.

Here's a summary of the historical highs and lows:

It's also worth noting that the best quarterly return was 6.28% on December 31, 2023.

The historical prices of the fund have seen some notable highs and lows. The highest price so far this year was $8.85 on February 10, 2025.

The fund's price has fluctuated within a narrow range, with the 52-week high being $8.93 on October 3, 2024.

The highest price in 2024 was also $8.93, achieved on the same date as the 52-week high.

The fund's quarterly returns have been quite variable, with the best quarterly return being 4.50% on December 31, 2023.

On the other hand, the worst quarterly return was -4.00% on March 31, 2022.

The fund's annual returns have also experienced significant fluctuations, with the best annual return being 4.91% on December 31, 2019.

In terms of dividend yield, the fund provided a 3.38% dividend yield over the last twelve months.

Here's a breakdown of the fund's dividend history over the past few years:

The fund has been increasing its distributions for 3 consecutive years, which is a positive sign for investors.

The Allspring Municipal Bond R6 fund is an actively managed investment that seeks income exempt from federal income tax. It was launched by Allspring Global Investments in 2018.

The fund invests at least 80% of its net assets in municipal securities exempt from federal income tax, but not necessarily federal alternative minimum tax (AMT). Up to 20% of the fund's total assets can be invested in securities subject to federal AMT.

The fund's investment strategy focuses on providing income while considering the relationship between risk and return. It's essential to keep in mind that the best-performing investments often come with higher risks.

Here are the key fund details:

The fund's investment portfolio is diversified, with up to 15% of the total assets invested in below-investment-grade municipal securities. Additionally, up to 10% of the fund's total assets can be invested in inverse floaters.

The fund's benchmark is the Bloomberg Municipal TR USD index, with a weighting of 100%. The top 10 holdings in the fund's portfolio constitute only 6.0% of the fund's assets.