Notes to portfolio of investments
All investments are valued each business day as of the close of regular trading on
the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Debt securities are valued at the evaluated bid price provided by an independent pricing
service (e.g., taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the
quoted bid price from an independent broker-dealer.
Equity securities and exchange-traded funds that are listed on a foreign or domestic
exchange or market are valued at the official closing price or, if none, the last sales price.
The values of securities denominated in foreign currencies are translated into U.S.
dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Valuation Committee at Allspring Funds Management, LLC (“Allspring Funds Management”).
Investments in registered open-end investment companies (other than those listed on
a foreign or domestic exchange or market) are valued at net asset value.
Investments which are not valued using the methods discussed above are valued at their
fair value, as determined in good faith by Allspring Funds Management, which was named the valuation designee by the Board of Trustees. As the
valuation designee, Allspring Funds Management is responsible for day-to-day valuation activities for the Allspring Funds. In connection with these
responsibilities, Allspring Funds Management has established a Valuation Committee and has delegated to it the authority to take any actions regarding
the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio
securities. On a quarterly basis, the Board of Trustees receives reports of valuation actions taken by the Valuation Committee. On at least an annual basis,
the Board of Trustees receives an assessment of the adequacy and effectiveness of Allspring Funds Management’s process for determining the fair value of the portfolio of investments.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values of other
assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency
pricing source at a time each business day specified by the Valuation Committee. Purchases and sales of securities, and income and expenses are converted
at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts
of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized
foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from
changes in exchange rates. The changes in net assets arising from changes in exchange rates of securities and the changes in net assets resulting from
changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.
The Fund may purchase securities on a forward commitment or when-issued basis. The
Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest
on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform
under the contract.
The Fund may invest in direct debt instruments which are interests in amounts owed
to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread.
Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases
participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the
credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct
rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include
fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent the
remaining obligation of the Fund to the borrower. At any point in time, up to the maturity date of the issue, the borrower may demand the unfunded portion.
Unfunded amounts, if any, are marked to market.
As of July 31, 2024, the Fund had the following unfunded loan commitments which are
available until the maturity date:
|
|
|
|
Enviva Partners LP/Enviva Partners Finance Corp., 13.28%, 12-13-2024 Tranche B
|
|
|
Based on the nature of the terms of the loans and comparative market rates, the carrying
amount of the unfunded loan commitments at July 31, 2024, approximates its fair value. If measured at fair value, the unfunded loan commitments
would be categorized as Level 2 under the fair value hierarchy.