Allspring Global Investments has launched the Worldwide Climate Transition Global Buy and Maintain fund, its third Article 8 offering.
The other two strategies in the suite include Allspring Climate Transition Global High Yield, launched in June 2023, and Allspring Climate Transition Global Investment Grade Credit, launched in August 2021.
Allspring Global Investments launches climate transition fixed income fund
The newly launched fund will be managed by head of global fixed income and sustainable investment Henrietta Pacquement, alongside co-managers Alex Temple, Scott Smith and Jonathan Terry.
The strategy aims to deliver exposure to global fixed income opportunities, focusing on ‘best-in-class' companies transitioning to a lower-carbon world.
Pacquement said: "After more than a decade of depressed yields, investors are now able to take advantage of much more constructive market conditions to build diversified exposure to high-quality credits. I have been saying all year that last year's correction creates this year's opportunity, and the launch of this new fund could not be better timed.
"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".
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Catherine McLaughlin, Allspring head of UK and Ireland institutional, added: "Following the rapid rise in yields in 2022, our UK institutional clients are increasingly de-risking their portfolios, resulting in a larger focus on quality fixed income assets. We have worked with both clients and consultants to design this solution that provides a combination of income to meet cash flow needs, net-zero aligned to meet climate goals and credit to provide attractive yield.
"We are therefore delighted to extend our range by launching the Allspring Climate Transition Global Buy and Maintain fund to support UK institutional investors meet both their financial and climate objectives. The fund incepted in August 2023 and has quickly grown to over $100m in size, and we are very positive on the outlook for this solution."
