Allspring Global Investments has launched two sub-funds to complement its existing climate transition fixed income products, which collectively manage over £4bn in assets.
Aon provided £100m of seed capital to launch the Climate Transition Buy and Maintain Plus 2025-2029 fund and the Climate Transition Buy and Maintain Plus 2030-2034 fund, with Allspring stating they are “a natural extension” after the success of its Climate Transition Global Buy and Maintain fund, which was launched in August 2023.
The Climate Transition Buy and Maintain Plus funds were launched on 22 January 2025 and are registered for distribution in the UK for institutional investors. According to Allspring, the ‘plus’ element identifies the differentiation from traditional buy and maintain strategies, whereby these funds can allocate up to 25% to sub-investment-grade credit in a risk-controlled manner seeking to provide investors an enhanced yield.
The funds apply a climate transition approach to help clients achieve their net-zero ambition while delivering on their financial objectives. They also integrate environmental, social and governance criteria to meet wider responsible investing commitments.
Fixed income is a core capability at Allspring, with three-quarters of its total assets (£339bn of £440bn) attributed across the fixed income spectrum. The group has been managing buy and maintain mandates for over 20 years and manages £18bn for clients globally.
Vicky Given, senior consultant relations director at Allspring, added: “We are delighted to have worked with Aon who have provided client seed capital to launch two maturing Climate Transition Buy and Maintain Plus funds. Most UK defined benefit pension schemes are in a much stronger funding position than they have been historically and although ‘run-on’ is not a new concept for trustees, they are now better placed to decide what’s best for their scheme. Beyond defined benefit, we continue to explore future opportunities for how our climate transition fixed income suite can solve for the ever-evolving needs of UK defined contribution and decumulation”.
Simon Rhodes, CFA, associate partner and head of liquid credit content at Aon, added: “Meeting our clients’ needs through collaboration and innovation is at the heart of what Aon does. In an environment where market challenges are ever greater, delivering impactful investment solutions is increasingly important. These funds are expected to provide a valuable additional return contribution to our clients’ portfolios, therefore we were pleased to work with Allspring to support the launch of the funds.”
