Allspring Global Investments has launched its second climate transition fixed income fund, the Article 8-classified Allspring Climate Transition Global High Yield fund.
The fund’s investment approach will be to provide exposure to global high yield fixed income opportunities focused on “best-in-class” companies transitioning to a lower-carbon world.
Managed by the firm’s Plus Fixed Income team and led by portfolio managers Mike Schueller, Jens Vanbrabant, Chris Lee and Sarah Harrison, the strategy will utilise Allspring’s proprietary climate transition credit research to deliver a high level of income.
The portfolio will balance financial and climate considerations, the firm said, for investors who are seeking to immediately reduce the carbon intensity of their investments and provide a “clear path” to net zero by 2050.
Andy Sowerby, Allspring head of international distribution, said one of the themes that have dominated client conversation 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. While many have already undertaken this move across equity holdings, fixed income portfolios are increasingly at the top of the to-do list,” he added.
‘’Therefore, we are delighted to expand our offering with the addition of the Allspring Climate Transition Global High Yield fund to further support investors with the transition to a low-carbon economy.”
Allspring’s current related strategy, the Allspring Climate Transition Global Investment Grade Credit fund, was introduced on 1 January 2021. The firm’s head of the global fixed income and sustainable investing teams, Henrietta Pacquement, leads the fixed income climate transition offering.
Source : Investment Week