Clients of global professional services company Aon have provided £100m of seed capital for the launch of two new Allspring-managed climate transition fixed income funds.
Launched on 22 January, the Climate Transition Buy and Maintain Plus 2025-2029 Fund and the Climate Transition Buy and Maintain Plus 2030-2034 Fund are registered for distribution in the UK and Luxembourg for institutional investors.
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” in a bid to help clients achieve their net-zero ambition while delivering on their financial objectives. They follow in the footsteps of Allspring’s Climate Transition Global Buy and Maintain Fund, which was launched in August 2023.
Fixed income accounts for three quarters of Allspring’s £400bn assets.
Simon Rhodes, CFA, associate partner, head of liquid credit content at Aon, said: “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.”
Alex Temple, senior portfolio manager at Allspring, said the funds represent “the next logical step in the evolution of our climate transition product suite”.
Aon did not disclose the names of the clients in question, the firm provides advisory and fiduciary services to public and corporate defined benefit plans as well as charities and endowments.
