Allspring Global Investments has launched its third climate transition fixed income fund for investors seeking to decarbonise investments on their path to net zero by 2050.
The product, Allspring (Lux) Worldwide Climate Transition Global Buy and Maintain Fund, aims to deliver exposure to global fixed income opportunities focused on companies transitioning to a lower-carbon world.
The fund’s approach is underpinned by the asset manager’s climate transition credit research framework to “deliver a portfolio that thoughtfully balances financial and climate considerations”.
Allspring has two related climate transition funds: the Allspring Climate Transition Global High Yield Fund launched in June 2023 and the Allspring Climate Transition Global Investment Grade Credit Fund launched in August 2021.
Henrietta Pacquement, head of global fixed income, highlighted how investors are leveraging improved market conditions to build diversified portfolios with high-quality credit assets following over a decade of low yields. “We have continued to deepen our research and resources around sustainability and climate research and can add significant further value to our clients in this evolving area”.
Catherine McLaughlin, head of UK & Ireland institutional, added: “Following the rapid rise in yields in 2022, our UK institutional clients are de-risking their portfolios, resulting in a larger focus on quality fixed income assets. This solution, which has grown to over $100 million since its inception in August 2023, provides a combination of income to meet cash flow needs, net-zero aligned to meet climate goals and credit to provide attractive yield.”
The fund is classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation and registered for distribution in Luxembourg, Switzerland and the UK.
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