Allspring Special Small Cap Value R6 Fund Performance and Comparison Review

The Allspring Special Small Cap Value R6 Fund has consistently delivered strong performance, with a 5-year annualized return of 14.45% as of December 2022. This is a significant achievement, especially considering the fund's focus on smaller companies.

The fund's performance is a result of its disciplined investment approach, which emphasizes value investing principles. By focusing on undervalued companies with strong fundamentals, the fund's managers aim to generate long-term returns for investors.

One notable aspect of the fund's performance is its ability to outperform its benchmark, the Russell 2000 Value Index, over the past 5 years. This demonstrates the fund's skill in identifying and investing in high-quality small-cap stocks that drive returns.

Small Cap Value investing is a strategy that focuses on companies with smaller market capitalizations. The Allspring Special Small Cap Value R6 fund invests at least 80% of its net assets in equity securities of small-capitalization companies.

These companies are typically defined as those with market capitalizations within the range of the Russell 2000 Index at the time of purchase. The fund's managers have an average tenure of 12.92 years, which is more important for actively managed funds like this one.

The goal of Small Cap Value investing is to achieve long-term capital appreciation. The fund's primary benchmark is the Russell 2000 Value TR USD index, which it tracks with a weighting of 100%.

The top 10 holdings in the fund's portfolio constitute 28.2% of its assets, indicating a relatively concentrated investment approach.

The Allspring Special Small Cap Value R6 investment strategy focuses on value investing, targeting undervalued small-cap companies with strong fundamentals.

These companies are selected based on their financial health, management quality, and growth potential.

The fund seeks to identify undervalued companies with a market capitalization of $1 billion or less, often trading at a discount to their intrinsic value.

The investment team uses a bottom-up approach, researching individual companies to determine their worth and potential for long-term growth.

The fund's investment process involves a thorough analysis of each company's financials, management team, and industry trends to identify potential value opportunities.

The Allspring Special Small Cap Value R6 fund has a management fee of 0.52% and a turnover rate of 24.4%, indicating a relatively low level of trading activity.

The Allspring Special Small Cap Value R6 fund has an expense ratio of 0.99%, which is 16% lower than its category average. This makes the fund's expense ratio grade a B.

The fund's high annual expense ratio can reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management.

The fund's portfolio turnover rate is 21%, indicating that it holds its assets for around 0.0 years. By comparison, the average portfolio turnover is 73% for the Small Value category.

In December 2024, the fund returned -7.4%, earning it a grade of C. This is slightly lower than the Small Value category's average return of -7.3%. The letter grades are based on relative rankings within the investment category.

Here's a brief snapshot of the fund's performance:

To give you a better idea of the fund's performance, consider this: if you invested $10,000 in the fund, you'd see the value grow over time. However, this chart doesn't include sales charges, and assumes reinvestment of dividends and capital gains. If sales charges were included, returns would be lower.