UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21269
Allspring Income Opportunities Fund
(Exact name of registrant as specified in charter)
1415 Vantage
Park Drive, 3rd Floor, Charlotte, NC 28203
(Address of principal executive
offices) (Zip code)
Matthew Prasse
Allspring Funds Management, LLC
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203
(Name and address of agent for service)
Registrant’s telephone number, including area
code: 800-222-8222
Date of fiscal year end:
April 30
Date of reporting period: October 31, 2024
ITEM 1. REPORT TO STOCKHOLDERS
Allspring Income Opportunities Fund (EAD)
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• On November 14, 2024, the Fund announced a renewal of its open-market share repurchase program (the “Buyback
Program”). Under the renewed Buyback Program, the Fund may repurchase up to 5%
of its outstanding shares in open market transactions during the period
beginning on January 1, 2025 and ending on December 31, 2025. The Fund’s Board of Trustees has delegated to Allspring Funds Management, LLC, the Fund’s adviser, discretion to administer the Buyback
Program, including the determination of the amount and timing of repurchases in
accordance with the best interests of the Fund and subject to applicable
legal limitations. |
• The Fund’s managed distribution plan provides for the declaration of monthly distributions to common shareholders of the
Fund at an annual minimum fixed rate of 8.75% based on the Fund’s average
monthly net asset value per share over the prior 12 months. Under the
managed distribution plan, monthly distributions may be sourced from income, paid-in capital, and/or capital gains, if any. To the extent that sufficient investment income is not available on a monthly basis, the Fund
may distribute long-term capital gains and/or return of capital to its shareholders in
order to maintain its managed distribution level. You should not draw
any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the managed distribution plan. Shareholders may elect to reinvest distributions
received pursuant to the managed distribution plan in the Fund under the existing
dividend reinvestment plan, which is described later in this
report. |
The views expressed and any forward-looking statements are as of October 31, 2024, unless
otherwise noted, and are those of the Fund’s portfolio managers and/or Allspring Global Investments. Discussions of individual
securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those
expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market.
Allspring Global Investments disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.
Allspring Income Opportunities Fund | 1
Performance highlights (unaudited)
Performance highlights
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The Fund seeks a high level of current income. Capital appreciation is a secondary objective. |
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Under normal market conditions, the Fund invests at least 80% of its total assets in below-investment-
grade (high yield) debt securities, loans and preferred stocks. These securities are rated Ba or
lower by Moody’s or BB or lower by S&P, or are unrated securities of
comparable quality as determined by the subadviser. |
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Allspring Funds Management, LLC |
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Allspring Global Investments, LLC |
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Chris Lee, CFA, Michael J. Schueller, CFA |
Average annual total returns (%) as of October 31, 20241 |
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Based on net asset value (NAV) |
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Bloomberg U.S. Universal Bond Index (Regulatory
Index)2 |
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ICE BofA U.S. High Yield Constrained Index (Strategy
Index)3 |
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Figures quoted represent
past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment return
and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their
original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and
capital gains. Performance figures of the Fund do not reflect brokerage commissions that a shareholder would pay on the purchase and sale of
shares. If taxes and such brokerage commissions had been reflected, performance would have been lower. To obtain performance information current to the most recent month-end, please call 1-800-222-8222.
Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. You should not expect that such favorable
returns can be consistently achieved. A fund’s performance, especially for short time periods, should not be the sole factor in making your investment
decision.
The Fund’s annualized expense ratio for the six
months ended October 31, 2024, was 3.67% which includes 2.64% of interest expense.
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Total returns based on market value are calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Total returns
based on NAV are calculated based on the NAV at the beginning of the
period and at the end of the period. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan. |
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The Bloomberg U.S. Universal Bond Index is an unmanaged market-value-weighted performance benchmark for the U.S.-dollar-denominated bond market, which includes
investment-grade, high-yield, and emerging markets debt securities with maturities
of one year or more. You cannot invest directly in an index. |
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The ICE BofA U.S. High Yield Constrained Index is a market-value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and
payment-in-kind securities. Issues included in the index have maturities
of one year or more and have a credit rating lower than BBB-/Baa3 but are not in default. The ICE BofA U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. Returns shown are net of transaction costs beginning on
July 1, 2022. You cannot invest directly in an index. Copyright 2024. ICE
Data Indices, LLC. All rights reserved. |
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
2 | Allspring Income Opportunities Fund
Performance highlights (unaudited)
Growth of $10,000 investment as of October 31, 20241 |
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The chart compares the performance of the Fund for the most recent ten years with the Bloomberg U.S. Universal Bond Index and ICE BofA U.S. High Yield Constrained
Index. The chart assumes a hypothetical investment of $10,000 investment and
reflects all operating expenses of the Fund. |
Comparison of NAV vs. market value1 |
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This chart does not reflect any brokerage commissions charged on the purchase and sale of the Fund’s common shares. Dividends and distributions paid by the Fund
are included in the Fund’s average annual total returns but have the effect
of reducing the Fund’s NAV. |
Allspring Income Opportunities Fund | 3
Performance highlights (unaudited)
Risk summary
This closed-end fund is no longer available as an initial public
offering and is only offered through broker-dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon
request. Shares of the Fund may trade at either a premium or discount relative to the Fund’s net asset value, and there can be no assurance that any
discount will decrease. The values of, and/or the income generated by, securities held by the Fund may decline due to general market conditions or other
factors, including those directly involving the issuers of such securities. Debt securities are subject to credit risk and interest rate risk, and high yield
securities and unrated securities of similar credit quality have a much greater risk of default and their values tend to be more volatile than higher-rated
securities with similar maturities. The Fund is leveraged through a revolving credit facility and also may incur leverage by issuing preferred shares in the
future. The use of leverage results in certain risks including, among others, the likelihood of greater volatility of the net asset value and the market value
of common shares. Derivatives involve additional risks including interest rate risk, credit risk, the risk of improper valuation, and the risk of non-correlation to the
relevant instruments that they are designed to hedge or closely track.
4 | Allspring Income Opportunities Fund
Performance highlights (unaudited)
MANAGER’S DISCUSSION
The Fund’s return based on market value was 10.80% for the six-month period that ended October 31, 2024. During the same period, the Fund’s return based on its net asset value (NAV) was 7.10%. Based on market value return, the Fund outperformed the ICE BofA U.S. High Yield Constrained Index, which returned 6.91% for the same period. Based on NAV return, the Fund underperformed its index.
Market overview
U.S. economic growth remained healthy over the past six months, averaging 2.9%
quarter-over-quarter annualized growth in the second and third quarters of 2024. Personal consumption remained the driving force of the U.S. expansion, fueled by disposable income growth and historically
elevated household net worths driven by the wealth effects stemming
from strong home and stock price appreciation. The labor market
remained healthy with nonfarm payroll growth averaging 131,800 per
month during the past six months, but it normalized as job openings fell below pre-COVID levels and the unemployment rate rose 0.2% to finish the period at
4.1%. Price pressures also continued to ease, with the U.S. Consumer Price Index
(CPI)* excluding food and energy dropping from 3.6% to 3.3% as of September 2024. With the growing balance of risks between
its employment and inflation mandates, the Federal Reserve began its rate-cutting cycle and opted to cut 50 basis points (bps; 100 bps equal 1.00%) at the September 2024 Federal Open Market Committee meeting, with an additional 100
bps of cuts expected to come in 2025.
The U.S.
high yield market returned 6.91% in the six-month period that ended October 31, 2024. During this period, financial conditions steadily eased, allowing the trailing 12-month default rate to decline to 1.3% from 2.3%
and high yield spreads to tighten to a 288-bps option-adjusted spread from 318 bps.
Ten largest holdings (%) as of October 31, 20241 |
CCM Merger, Inc., 6.38%, 5-1-2026 |
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Air Canada Pass-Through Trust, 10.50%, 7-15-2026 |
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CCO Holdings LLC/CCO Holdings Capital Corp., 4.50%, 8-15-2030 |
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Cinemark USA, Inc., 7.00%, 8-1-2032 |
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Tenet Healthcare Corp., 6.75%, 5-15-2031 |
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B&G Foods, Inc., 8.00%, 9-15-2028 |
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Royal Caribbean Cruises Ltd., 6.25%, 3-15-2032 |
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Match Group Holdings II LLC, 5.63%, 2-15-2029 |
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CommScope LLC, 6.00%, 3-1-2026 |
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CoreCivic, Inc., 8.25%, 4-15-2029 |
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Figures represent the percentage of the Fund’s net assets. Holdings are subject to change and may have changed since the date specified. |
The portfolio outperformed the benchmark based on market value and
underperformed the benchmark based on NAV for the six-month period.
In April 2024, the portfolio was overweight gas distribution, electric-generation, and recreation and travel and underweight telecom-wireline, chemicals, and
support services. By rating, the Fund was overweight BBB-rated bonds and underweight BB-rated bonds and below. The Fund was
underweight the
maturity segment inside 7 years and overweight the 7-year-plus segment relative to the benchmark. The Fund was
underweight duration, yield, and spread against the benchmark.
Credit quality as of October 31, 20241 |
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The credit quality distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service,
and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying
holdings of the Fund and not to the Fund itself. The percentages of the
portfolio with the ratings depicted in the chart are calculated based on the
market value of fixed income securities held by the Fund. If a security
was rated by all three rating agencies, the middle rating was utilized. If
rated by two of the three rating agencies, the lower rating was utilized,
and if rated by one of the rating agencies, that rating was utilized.
Standard & Poor’s rates the creditworthiness of bonds, ranging
from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by
the addition of a plus (+) or minus (-) sign to show relative standing within the rating
categories. Standard & Poor’s rates the creditworthiness of
short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates
the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest).
Ratings Aa to B may be modified by the addition of a number 1 (highest) to
3 (lowest) to show relative standing within the ratings categories.
Moody’s rates the creditworthiness of short-term U.S. tax-exempt
municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch
rates the creditworthiness of bonds, ranging from AAA (highest) to D
(lowest). Credit quality distribution is subject to change and may have changed
since the date specified. |
In the six months that ended October 2024, support services and building materials
were the strongest contributing sectors while cable and satellite TV and managed care were the most detrimental sectors. Sabre Global and Werner FinCo were our best performers, while MultiPlan and Enviva were the worst.
Not holding New Fortress Energy was positive while not holding AMC hurt relative performance as it rallied in the index. By rating, our underweight to higher-quality BB-rated bonds helped performance while our
underweight to CCC-rated bonds and below was detrimental. Our overweight to the segment outside of 10 years drove performance while our overweight to 7- to 10-year bonds hurt.
At the end of October, we were underweight duration and spread relative to the
benchmark and approximately even on yield. The Fund maintained both its underweight to the inside 7-year segment and its overweight to
*The U.S. Consumer Price Index (CPI) is a measure of the average change
over time in the prices paid by urban consumers for a market basket of consumer goodsand services. You cannot invest directly in an index.
Allspring Income Opportunities Fund | 5
Performance highlights (unaudited)
the 7-year-plus
segment. We reduced our overweight to BBB-rated bonds and reduced our underweights to BB-rated issues and CCCs and below. By sector, the Fund is overweight gas distribution, lease financing, and
electric-integrated and underweight support/services, chemicals, and
metals/mining ex-steel.
Effective maturity distribution as of October 31, 20241 |
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Figures represent the percentage of the Fund’s fixed-income securities. Allocations are subject to change and may have changed since the date specified. |
Leverage had a positive impact
The Fund’s use of leverage through bank borrowings had a positive impact on the NAV total return performance during this reporting period. As of October
31, 2024, the Fund had 30.3% leverage as a percent of total assets.
Gross domestic product growth near 3%, declining inflation, and less-restrictive
monetary policy promote accommodative financial conditions, which lead to low defaults and tight spreads. High yield issuer fundamentals remain healthy. Balance sheets and leverage ratios compare favorably
with prior credit cycles. Aggressive issuance has migrated outside of the high yield universe, preventing an unhealthy buildup of risky bonds that eventually default and cause high yield spreads to dramatically widen.
Our constructive outlook on issuer fundamentals, defaults, and market technicals outweighs our concern over tight spreads. Thus, we believe it is too early to adopt a defensive stance toward the high yield market.
6 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
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Asset-backed securities: 0.16% |
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Frontier Issuer LLC Series 2024-1 Class C144A |
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Total asset-backed securities (Cost $615,000) |
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Communication services: 0.00% |
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Diversified telecommunication services: 0.00% |
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Independent power and renewable electricity producers: 0.37% |
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Investment Companies: 0.03% |
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Total common stocks (Cost $464,340) |
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Corporate bonds and notes: 110.59% |
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SCIH Salt Holdings, Inc.144A |
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Cleveland-Cliffs, Inc.144A |
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Clear Channel Outdoor Holdings, Inc.144A |
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Clear Channel Outdoor Holdings, Inc.144A |
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Outfront Media Capital LLC/Outfront Media Capital Corp.144A
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Outfront Media Capital LLC/Outfront Media Capital Corp.144A
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Cablevision Lightpath LLC144A |
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Cablevision Lightpath LLC144A |
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Match Group Holdings II LLC144A |
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CCO Holdings LLC/CCO Holdings Capital Corp.144A |
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CCO Holdings LLC/CCO Holdings Capital Corp.144A |
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CCO Holdings LLC/CCO Holdings Capital Corp. |
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CCO Holdings LLC/CCO Holdings Capital Corp.144A |
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The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 7
Portfolio of investments—October 31, 2024 (unaudited)
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CCO Holdings LLC/CCO Holdings Capital Corp.144A |
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Directv Financing LLC/Directv Financing Co-Obligor, Inc.144A
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Paramount Global (3 Month LIBOR+3.90%)± |
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Sirius XM Radio, Inc.144A |
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Townsquare Media, Inc.144A |
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Telecommunications: 4.08% |
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Level 3 Financing, Inc.144A |
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Level 3 Financing, Inc.144A |
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Level 3 Financing, Inc.144A |
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Lumen Technologies, Inc.144A |
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Windstream Services LLC/Windstream Escrow Finance Corp.144A
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Windstream Services LLC/Windstream Escrow Finance Corp.144A
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Consumer, cyclical: 18.18% |
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American Airlines, Inc./AAdvantage Loyalty IP Ltd.144A
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Hawaiian Airlines Pass-Through Certificates Series 2013-1 Class 1A |
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Auto parts & equipment: 0.49% |
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Cooper Tire & Rubber Co. LLC |
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Churchill Downs, Inc.144A |
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Six Flags Entertainment Corp./Six Flags Theme Parks, Inc.144A
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The accompanying notes are an integral part of these financial statements.
8 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
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Taylor Morrison Communities, Inc.144A |
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Genting New York LLC/GENNY Capital, Inc.144A |
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Bath & Body Works, Inc.144A |
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Carvana Co. (PIK at 13.00%)144A¥ |
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Dave & Buster’s, Inc.144A |
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Group 1 Automotive, Inc.144A |
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Macy’s Retail Holdings LLC144A |
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Macy’s Retail Holdings LLC144A |
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NMG Holding Co., Inc./Neiman Marcus Group LLC144A |
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PetSmart, Inc./PetSmart Finance Corp.144A |
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Sally Holdings LLC/Sally Capital, Inc. |
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Sonic Automotive, Inc.144A |
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Sonic Automotive, Inc.144A |
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Victra Holdings LLC/Victra Finance Corp.144A |
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Walgreens Boots Alliance, Inc. |
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Consumer, non-cyclical: 15.10% |
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Commercial services: 4.14% |
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Allied Universal Holdco LLC144A |
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Allied Universal Holdco LLC/Allied Universal Finance Corp.144A
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The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 9
Portfolio of investments—October 31, 2024 (unaudited)
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Commercial services(continued) |
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Service Corp. International |
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Sotheby’s/Bidfair Holdings, Inc.144A |
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Lamb Weston Holdings, Inc.144A |
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Performance Food Group, Inc.144A |
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Healthcare-services: 6.51% |
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CHS/Community Health Systems, Inc.144A |
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CHS/Community Health Systems, Inc.144A |
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CHS/Community Health Systems, Inc.144A |
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CHS/Community Health Systems, Inc.144A |
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Concentra Escrow Issuer Corp.144A |
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| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
MPH Acquisition Holdings LLC144A |
|
|
|
|
|
|
MPH Acquisition Holdings LLC144A |
|
|
|
|
|
|
Pediatrix Medical Group, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Surgery Center Holdings, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Household products/wares: 0.35% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Endo Finance Holdings, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Energy-alternate sources: 1.38% |
|
|
|
|
|
|
Enviva Partners LP/Enviva Partners Finance Corp.144A† |
|
|
|
|
|
|
TerraForm Power Operating LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Aethon United BR LP/Aethon United Finance Corp.144A |
|
|
|
|
|
|
California Resources Corp.144A |
|
|
|
|
|
|
Encino Acquisition Partners Holdings LLC144A |
|
|
|
|
|
|
Encino Acquisition Partners Holdings LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
10 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Hilcorp Energy I LP/Hilcorp Finance Co.144A |
|
|
|
|
|
|
Hilcorp Energy I LP/Hilcorp Finance Co.144A |
|
|
|
|
|
|
Hilcorp Energy I LP/Hilcorp Finance Co.144A |
|
|
|
|
|
|
Kraken Oil & Gas Partners LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Nabors Industries Ltd.144A |
|
|
|
|
|
|
Nabors Industries, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Oil & gas services: 1.92% |
|
|
|
|
|
|
Archrock Partners LP/Archrock Partners Finance Corp.144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Oceaneering International, Inc. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Antero Midstream Partners LP/Antero Midstream Finance Corp.144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
CQP Holdco LP/BIP-V Chinook Holdco LLC144A |
|
|
|
|
|
|
CQP Holdco LP/BIP-V Chinook Holdco LLC144A |
|
|
|
|
|
|
Energy Transfer LP (5 Year Treasury Constant Maturity+4.02%)± |
|
|
|
|
|
|
Energy Transfer LP Series H (5 Year Treasury Constant Maturity+5.69%)ʊ± |
|
|
|
|
|
|
Harvest Midstream I LP144A |
|
|
|
|
|
|
Harvest Midstream I LP144A |
|
|
|
|
|
|
Hess Midstream Operations LP144A |
|
|
|
|
|
|
Hess Midstream Operations LP144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Rockies Express Pipeline LLC144A |
|
|
|
|
|
|
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.144A
|
|
|
|
|
|
|
Venture Global Calcasieu Pass LLC144A |
|
|
|
|
|
|
Venture Global LNG, Inc.144A |
|
|
|
|
|
|
Venture Global LNG, Inc.144A |
|
|
|
|
|
|
Venture Global LNG, Inc. (5 Year Treasury Constant Maturity+5.44%)144Aʊ± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Bank of America Corp. Series RR (5 Year Treasury Constant Maturity+2.76%)ʊ± |
|
|
|
|
|
|
Citigroup, Inc. Series X (5 Year Treasury Constant Maturity+3.42%)ʊ± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 11
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
Diversified financial services: 7.74% |
|
|
|
|
|
|
Aircastle Ltd. Series A (5 Year Treasury Constant Maturity+4.41%)144Aʊ± |
|
|
|
|
|
|
Discover Financial Services Series C (U.S. SOFR 3 Month+3.34%)ʊ± |
|
|
|
|
|
|
Encore Capital Group, Inc.144A |
|
|
|
|
|
|
Jane Street Group/JSG Finance, Inc.144A |
|
|
|
|
|
|
Jane Street Group/JSG Finance, Inc.144A |
|
|
|
|
|
|
Jefferies Finance LLC/JFIN Co-Issuer Corp.144A |
|
|
|
|
|
|
Jefferies Finance LLC/JFIN Co-Issuer Corp.144A |
|
|
|
|
|
|
Jefferson Capital Holdings LLC144A |
|
|
|
|
|
|
Nationstar Mortgage Holdings, Inc.144A |
|
|
|
|
|
|
Nationstar Mortgage Holdings, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc.144A
|
|
|
|
|
|
|
United Wholesale Mortgage LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
AssuredPartners, Inc.144A |
|
|
|
|
|
|
BroadStreet Partners, Inc.144A |
|
|
|
|
|
|
HUB International Ltd.144A |
|
|
|
|
|
|
HUB International Ltd.144A |
|
|
|
|
|
|
HUB International Ltd.144A |
|
|
|
|
|
|
Panther Escrow Issuer LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Investment Companies: 0.34% |
|
|
|
|
|
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |
|
|
|
|
|
|
Icahn Enterprises LP/Icahn Enterprises Finance Corp. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Brandywine Operating Partnership LP |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.144A |
|
|
|
|
|
|
MPT Operating Partnership LP/MPT Finance Corp. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Service Properties Trust144A |
|
|
|
|
|
|
Uniti Group LP/Uniti Fiber Holdings, Inc./CSL Capital LLC144A
|
|
|
|
|
|
|
Uniti Group LP/Uniti Group Finance 2019, Inc./CSL Capital LLC144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
12 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Spirit AeroSystems, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Building materials: 2.73% |
|
|
|
|
|
|
Builders FirstSource, Inc.144A |
|
|
|
|
|
|
Camelot Return Merger Sub, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
EMRLD Borrower LP/Emerald Co-Issuer, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Electrical components & equipment: 0.99% |
|
|
|
|
|
|
Energizer Holdings, Inc.144A |
|
|
|
|
|
|
WESCO Distribution, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Sensata Technologies, Inc.144A |
|
|
|
|
|
|
Environmental control: 0.43% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Hand/machine tools: 1.46% |
|
|
|
|
|
|
Werner FinCo LP/Werner FinCo, Inc.144A |
|
|
|
|
|
|
Werner FinCo LP/Werner FinCo, Inc. (PIK at 5.75%)144A¥
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Machinery-diversified: 0.59% |
|
|
|
|
|
|
Chart Industries, Inc.144A |
|
|
|
|
|
|
Chart Industries, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Packaging & containers: 1.59% |
|
|
|
|
|
|
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC144A |
|
|
|
|
|
|
Clydesdale Acquisition Holdings, Inc.144A |
|
|
|
|
|
|
Clydesdale Acquisition Holdings, Inc.144A |
|
|
|
|
|
|
Mauser Packaging Solutions Holding Co.144A |
|
|
|
|
|
|
Sealed Air Corp./Sealed Air Corp. U.S.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Genesee & Wyoming, Inc.144A |
|
|
|
|
|
|
Trucking & leasing: 2.02% |
|
|
|
|
|
|
AerCap Global Aviation Trust (U.S. SOFR 3 Month+4.56%)144A± |
|
|
|
|
|
|
Fortress Transportation & Infrastructure Investors LLC144A
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 13
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
Trucking & leasing(continued) |
|
|
|
|
|
|
Fortress Transportation & Infrastructure Investors LLC144A
|
|
|
|
|
|
|
Fortress Transportation & Infrastructure Investors LLC144A
|
|
|
|
|
|
|
Fortress Transportation & Infrastructure Investors LLC144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Insight Enterprises, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Office/business equipment: 0.54% |
|
|
|
|
|
|
Zebra Technologies Corp.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
AthenaHealth Group, Inc.144A |
|
|
|
|
|
|
Cloud Software Group, Inc.144A |
|
|
|
|
|
|
Cloud Software Group, Inc.144A |
|
|
|
|
|
|
Cloud Software Group, Inc.144A |
|
|
|
|
|
|
Rocket Software, Inc.144A |
|
|
|
|
|
|
SS&C Technologies, Inc.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
AES Corp. (5 Year Treasury Constant Maturity+3.20%)± |
|
|
|
|
|
|
Edison International (5 Year Treasury Constant Maturity+3.86%)± |
|
|
|
|
|
|
EUSHI Finance, Inc. (5 Year Treasury Constant Maturity+3.14%)144A± |
|
|
|
|
|
|
NextEra Energy Operating Partners LP144A |
|
|
|
|
|
|
Pattern Energy Operations LP/Pattern Energy Operations, Inc.144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
PG&E Corp. (5 Year Treasury Constant Maturity+3.88%)± |
|
|
|
|
|
|
Sempra (5 Year Treasury Constant Maturity+2.87%)± |
|
|
|
|
|
|
Vistra Corp. (5 Year Treasury Constant Maturity+5.74%)144Aʊ± |
|
|
|
|
|
|
Vistra Corp. Series C (5 Year Treasury Constant Maturity+5.05%)144Aʊ± |
|
|
|
|
|
|
Vistra Operations Co. LLC144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Total corporate bonds and notes (Cost $481,441,923) |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
14 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
CSC Holdings LLC (U.S. SOFR 1 Month+4.50%)± |
|
|
|
|
|
|
Hubbard Radio LLC (U.S. SOFR 1 Month+4.50%)ౠ|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer, cyclical: 2.55% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
SkyMiles IP Ltd. (U.S. SOFR 3 Month+3.75%)± |
|
|
|
|
|
|
Auto parts & equipment: 0.44% |
|
|
|
|
|
|
First Brands Group LLC (U.S. SOFR 3 Month+5.00%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Crown Finance U.S., Inc. (U.S. SOFR 1 Month+5.25%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
American Greetings Corp. (U.S. SOFR 1 Month+5.75%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Chinos Intermediate Holding, Inc. (U.S. SOFR 3 Month+5.00%)± |
|
|
|
|
|
|
Petco Health & Wellness Co., Inc. (U.S. SOFR 3 Month+3.25%)± |
|
|
|
|
|
|
PetSmart, Inc. (U.S. SOFR 1 Month+3.75%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer, non-cyclical: 1.02% |
|
|
|
|
|
|
Commercial services: 0.09% |
|
|
|
|
|
|
GEO Group, Inc. (U.S. SOFR 1 Month+5.25%)± |
|
|
|
|
|
|
Sotheby’s (U.S. SOFR 1 Month+4.50%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Healthcare-services: 0.93% |
|
|
|
|
|
|
LifePoint Health, Inc. (U.S. SOFR 3 Month+4.00%)± |
|
|
|
|
|
|
Modivcare, Inc. (U.S. SOFR 3 Month+4.68%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Energy-alternate sources: 0.27% |
|
|
|
|
|
|
Enviva Partners LP/Enviva Partners Finance Corp. (U.S. SOFR 3 Month+8.00%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Prairie ECI Acquiror LP (U.S. SOFR 1 Month+4.75%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Diversified financial services: 0.30% |
|
|
|
|
|
|
Resolute Investment Managers, Inc. (U.S. SOFR 3 Month+6.50%)± |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 15
Portfolio of investments—October 31, 2024 (unaudited)
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Asurion LLC (U.S. SOFR 1 Month+5.25%)± |
|
|
|
|
|
|
Truist Insurance Holdings LLC (U.S. SOFR 3 Month+4.75%)± |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Rocket Software, Inc. (U.S. SOFR 1 Month+4.75%)± |
|
|
|
|
|
|
Total loans (Cost $23,731,091) |
|
|
|
|
|
|
Yankee corporate bonds and notes: 20.39% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Braskem Netherlands Finance BV144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Virgin Media Secured Finance PLC144A |
|
|
|
|
|
|
Telecommunications: 1.55% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Telecom Italia Capital SA |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer, cyclical: 4.76% |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Air Canada Pass-Through Trust Series 2020-1 Class C144A
|
|
|
|
|
|
|
VistaJet Malta Finance PLC/Vista Management Holding, Inc.144A
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Banijay Entertainment SAS144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Royal Caribbean Cruises Ltd.144A |
|
|
|
|
|
|
Royal Caribbean Cruises Ltd.144A |
|
|
|
|
|
|
Royal Caribbean Cruises Ltd.144A |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Consumer, non-cyclical: 2.16% |
|
|
|
|
|
|
Cosmetics/Personal Care: 0.57% |
|
|
|
|
|
|
Perrigo Finance Unlimited Co. |
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
16 | Allspring Income Opportunities Fund
Portfolio of investments—October 31, 2024 (unaudited)
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Bausch Health Cos., Inc.144A |
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|
Bausch Health Cos., Inc.144A |
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Teva Pharmaceutical Finance Netherlands III BV |
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Borr IHC Ltd./Borr Finance LLC144A |
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Saturn Oil & Gas, Inc.144A |
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Enbridge, Inc. (5 Year Treasury Constant Maturity+4.42%)± |
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Northriver Midstream Finance LP144A |
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South Bow Canadian Infrastructure Holdings Ltd. (5 Year Treasury Constant Maturity+3.95%)144A± |
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Banco Santander SA (5 Year Treasury Constant Maturity+5.31%)ʊ± |
|
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BBVA Bancomer SA (5 Year Treasury Constant Maturity+4.66%)144A± |
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|
BNP Paribas SA (5 Year Treasury Constant Maturity+3.73%)144Aʊ± |
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|
Intesa Sanpaolo SpA (5 Year USD Swap Rate+5.46%)144Aʊ± |
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UBS Group AG (5 Year Treasury Constant Maturity+3.40%)144Aʊ± |
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UBS Group AG (USD SOFR ICE Swap Rate 11:00am NY 5 Year+4.16%)144Aʊ± |
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Diversified financial services: 1.86% |
|
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AerCap Ireland Capital DAC/AerCap Global Aviation Trust (5 Year Treasury Constant Maturity+2.72%)± |
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Castlelake Aviation Finance DAC144A |
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Macquarie Airfinance Holdings Ltd.144A |
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Sensata Technologies BV144A |
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Sensata Technologies BV144A |
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The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 17
Portfolio of investments—October 31, 2024 (unaudited)
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Machinery-diversified: 0.37% |
|
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TK Elevator Holdco GmbH144A |
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Packaging & containers: 0.66% |
|
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Trivium Packaging Finance BV144A |
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Algonquin Power & Utilities Corp. (5 Year Treasury Constant Maturity+3.25%)± |
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Total yankee corporate bonds and notes (Cost $87,960,617) |
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Short-term investments: 4.93% |
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Investment companies: 4.93% |
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Allspring Government Money Market Fund Select Class♠∞## |
|
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|
Total short-term investments (Cost $21,487,399) |
|
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|
Total investments in securities (Cost $615,700,370) |
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Other assets and liabilities, net |
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The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of
1933. |
| |
Non-income-earning security |
| |
Security is valued using significant unobservable inputs. |
| |
Variable rate investment. The rate shown is the rate in effect at period end. |
| |
The security is purchased on a when-issued basis. |
| |
A payment-in-kind (PIK) security is a security in which the issuer may make interest or dividend payments in cash or additional securities or a combination of both.
The rate shown is the rate in effect at period end. |
| |
Security is perpetual in nature and has no stated maturity date. The date shown reflects the next call date. |
| |
The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
| |
The rate represents the 7-day annualized yield at period end. |
| |
All or a portion of this security is segregated for when-issued securities and unfunded loans. |
| |
| |
London Interbank Offered Rate |
| |
Real estate investment trust |
| |
Secured Overnight Financing Rate |
Investments in affiliates
An affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same adviser or investment manager. Transactions with issuers that were affiliates of the Fund at the end of the period were as follows:
| |
Value,
beginning of
period |
|
|
Net
realized
gains
(losses) |
Net
change in
unrealized
gains
(losses) |
|
|
Income
from
affiliated
securities |
| |
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|
Allspring Government Money Market Fund Select Class |
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|
The
accompanying notes are an integral part of these financial statements.
18 | Allspring Income Opportunities Fund
Statement of assets and liabilities—October 31, 2024 (unaudited)
Financial statements
Statement of assets and liabilities
| |
|
Investments in unaffiliated securities, at value (cost $594,212,971) |
|
Investments in affiliated securities, at value (cost $21,487,399) |
|
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| |
|
Receivable for investments sold |
|
Principal paydown receivable |
|
Unrealized gains on unfunded loan commitments |
|
Prepaid expenses and other assets |
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Secured borrowing payable |
|
Payable for investments purchased |
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Payable for when-issued transactions |
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Administration fee payable |
|
Trustees’ fees and expenses payable |
|
Accrued expenses and other liabilities |
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Commitments and contingent liabilities (see Note 8) |
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| |
|
Net asset value per share |
|
Based on $435,604,435 divided by 59,092,336 shares issued and outstanding (100,000,000 shares
authorized) |
|
The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 19
Statement of operations—six months ended October 31, 2024 (unaudited)
Statement of operations
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Income from affiliated securities |
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Custody and accounting fees |
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Shareholder report expenses |
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Trustees’ fees and expenses |
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Realized and unrealized gains (losses) on investments |
|
Net realized losses on investments |
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Net change in unrealized gains (losses) on |
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Unfunded loan commitments |
|
Net change in unrealized gains (losses) on investments |
|
Net realized and unrealized gains (losses) on investments |
|
Net increase in net assets resulting from operations |
|
The
accompanying notes are an integral part of these financial statements.
20 | Allspring Income Opportunities Fund
Statement of changes in net assets
Statement of
changes in net assets
| |
Six months ended October 31, 2024 (unaudited) |
Year ended April 30, 2024 |
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Net realized losses on investments |
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Net change in unrealized gains (losses) on investments |
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Net increase in net assets resulting from operations |
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Distributions to shareholders from |
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Net investment income and net realized gains |
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Tax basis return of capital |
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Total distributions to shareholders |
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Capital share transactions |
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Cost of shares repurchased |
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Total increase (decrease) in net assets |
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The
accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 21
Statement of cash flows—six months ended October 31, 2024 (unaudited)
Statement of cash flows
Cash flows from operating activities |
|
Net increase in net assets resulting from operations |
|
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities |
|
Purchases of long-term securities |
|
Proceeds from the sales of long-term securities |
|
| |
|
Purchases and sales of short-term securities, net |
|
Increase in receivable for investments sold |
|
Increase in principal paydown receivable |
|
Increase in receivable for interest |
|
Decrease in prepaid expenses and other assets |
|
Decrease in payable for investments purchased |
|
Increase in trustees’ fees and expenses payable |
|
Increase in advisory fee payable |
|
Increase in administration fee payable |
|
Decrease in accrued expenses and other liabilities |
|
Net realized losses on unaffiliated securities |
|
Net change in unrealized (gains) losses on unaffiliated securities |
|
Net change in unrealized (gains) losses on unfunded loan commitments |
|
Net cash provided by operating activities |
|
Cash flows from financing activities |
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|
Net cash used in financing activities |
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|
Supplemental cash disclosure |
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|
The accompanying notes are an integral part of these financial statements.
22 | Allspring Income Opportunities Fund
Financial
highlights
(For a share outstanding throughout each period)
| |
Six months ended
October 31, 2024
(unaudited) |
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Net asset value, beginning of period |
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Net realized and unrealized gains (losses) on investments |
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Total from investment operations |
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Distributions to shareholders from |
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Tax basis return of capital |
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Total distributions to shareholders |
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Anti-dilutive effect of shares repurchased |
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Net asset value, end of period |
|
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|
Market value, end of period |
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Total return based on market value3 |
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|
Ratios to average net assets (annualized)
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Net assets, end of period (000s omitted) |
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|
Borrowings outstanding, end of period (000s omitted) |
|
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|
|
Asset coverage per $1,000 of borrowing, end of period |
|
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| |
Ratios include interest expense relating to interest associated with borrowings and/or leverage transactions as follows: |
Six months ended October 31, 2024 (unaudited) |
|
Year ended April 30, 2024 |
|
Year ended April 30, 2023 |
|
Year ended April 30, 2022 |
|
Year ended April 30, 2021 |
|
Year ended April 30, 2020 |
|
| |
Calculated based upon average shares outstanding |
| |
Amount is less than $0.005. |
| |
Total return is calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Dividends and distributions, if any,
are assumed for purposes of these calculations to be reinvested at prices
obtained under the Fund’s Automatic Dividend Reinvestment Plan. Total return does not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. |
The accompanying notes are an integral part of these financial statements.
Allspring Income Opportunities Fund | 23
Notes to financial statements (unaudited)
Notes to financial
statements
Allspring Income Opportunities Fund (the “Fund”)
was organized as a statutory trust under the laws of the state of Delaware on December 3, 2002 and is registered as a diversified closed-end management
investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Fund follows the accounting
and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
2.
SIGNIFICANT ACCOUNTING POLICIES
The
following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with
U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the
reporting period. Actual results could differ from those estimates.
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.
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, LLC (“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.
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 and any unrealized gains or losses are recorded in the Statement of Assets and Liabilities.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and
premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off
interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the
fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt
obligation is removed from non-accrual status. Paydown gains and losses are included in interest income.
24 | Allspring Income Opportunities Fund
Notes to financial statements (unaudited)
Dividend income is recognized
on the ex-dividend date.
Interest earned on cash balances held at the
custodian is recorded as interest income.
Distributions received from REIT investments may be characterized as ordinary income, capital gains, or a return of capital to the Fund
based on information provided by the REIT. The proper characterization of REIT distributions is generally not known until after the end of each calendar year.
As such, estimates may be used in reporting the character of income and distributions for financial statement purposes.
Distributions to shareholders
Under a managed distribution plan, the Fund pays monthly distributions to shareholders at an annual minimum fixed
rate of 8.75% based on the Fund’s average monthly net asset value per share over the prior 12 months. The monthly distributions may be sourced from
income, paid-in capital, and/or capital gains, if any. To the extent that sufficient investment income is not available on a monthly basis, the Fund may
distribute paid-in capital and/or capital gains, if any, in order to maintain its managed distribution level.
Distributions to shareholders from net investment income and net
realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from
U.S. GAAP. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end.
Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its
investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or
substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all
financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.
Management has analyzed the Fund’s tax positions taken on federal, state, and foreign
tax returns, as applicable, for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of October 31, 2024, the aggregate cost of all investments for
federal income tax purposes was $619,175,928 and the unrealized gains (losses) consisted of:
As of April 30, 2024, the Fund had capital loss carryforwards which consisted of $41,149,415 in short-term capital losses and
$67,131,824 in long-term capital losses.
3.
FAIR VALUATION MEASUREMENTS
Fair
value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in
determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within
the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as
follows:
•Level 1—quoted prices in active markets for identical securities
•Level 2—other significant observable inputs
(including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
•Level 3—significant unobservable inputs (including the Fund’s own
assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with
investing in those securities.
Allspring Income Opportunities Fund | 25
Notes to financial statements (unaudited)
The following is a summary of
the inputs used in valuing the Fund’s assets and liabilities as of October 31, 2024:
| |
|
Other significant
observable inputs
(Level 2) |
Significant
unobservable inputs
(Level 3) |
|
| |
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| |
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| |
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| |
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|
| |
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|
| |
|
|
|
|
Corporate bonds and notes |
|
|
|
|
| |
|
|
|
|
Yankee corporate bonds and notes |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
Additional sector, industry or geographic detail, if any, is included in the Portfolio of Investments.
At October 31, 2024, the Fund had no material transfers into/out of Level
3.
4.
TRANSACTIONS WITH AFFILIATES
Allspring Funds Management, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, a
holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., is the adviser to the Fund and is entitled to
receive a fee at an annual rate of 0.60% of the Fund’s average daily total assets, which is generally paid monthly. Total assets consist of the net
assets of the Fund plus borrowings or other leverage for investment purposes to the extent excluded in calculating net assets.
Allspring Funds Management has retained the services of a subadviser
to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Allspring Funds Management. Allspring Global Investments, LLC,
an affiliate of Allspring Funds Management and a wholly owned subsidiary of Allspring Global Investments Holdings, LLC, is the subadviser to the Fund and is
entitled to receive a fee from Allspring Funds Management at an annual rate of 0.40% of the Fund’s average daily total assets.
Allspring
Funds Management also serves as the administrator to the Fund, providing the Fund with a wide range of administrative services necessary to the operation of
the Fund. Allspring Funds Management is entitled to receive an annual administration fee from the Fund equal to 0.05% of the Fund’s average daily total assets and
generally paid monthly.
The Fund may purchase or sell portfolio investment securities to certain affiliates pursuant to Rule 17a-7 under
the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not
incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund did not have any interfund transactions during the six
months ended October 31, 2024.
5.
CAPITAL SHARE TRANSACTIONS
The Fund
has authorized capital of 100,000,000 shares with no par value. For the six months ended October 31, 2024 and year ended April 30, 2024, the Fund did not issue any
shares.
Under an open-market share repurchase
program (the “Buyback Program”), the Fund is authorized to repurchase up to 5% of its outstanding shares in open market transactions. The
Fund’s Board of Trustees has delegated to Allspring Funds Management full discretion to administer the Buyback Program including the determination of the
amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations. During the six months ended
October 31, 2024, the Fund did not repurchase any of its shares under the open-market share repurchase program. During the year ended April 30, 2024, the Fund purchased
572,021 of its shares on the open market at a total cost of $3,645,041.
The Fund has borrowed $189,000,000 through a revolving line of
credit administered by a major financial institution (the “Facility”). The Facility has a commitment amount of up to $194,000,000. The Fund is
charged interest at the 1 Month Secured Overnight Financing Rate (SOFR) plus a spread and a
26 | Allspring Income Opportunities Fund
Notes to financial statements (unaudited)
commitment
fee based on the unutilized amount of the commitment amount. The financial institution holds a security interest in all the assets of the Fund as collateral
for the borrowing. Based on the nature of the terms of the Facility and comparative market rates, the carrying amount of the borrowings at October 31, 2024 approximates its
fair value. If measured at fair value, the borrowings would be categorized as a Level 2 under the fair value hierarchy.
During the six months ended October 31, 2024, the Fund had average borrowings outstanding of $194,000,000 (on an annualized basis) at an average interest rate of 5.92% and recorded interest in the amount of $5,771,044, which represents 2.64% of its average daily net assets (on an annualized basis).
7.
INVESTMENT PORTFOLIO TRANSACTIONS
Purchases
and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended October 31, 2024 were $255,501,309 and
$244,373,384, respectively.
As of October 31, 2024, the Fund had the following unfunded loan
commitments which are available until the maturity date:
| |
|
|
Enviva Partners LP/Enviva Partners Finance Corp., 12.63%, 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 October 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.
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights
against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee
that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the
future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that
contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against
the Fund and, therefore, cannot be estimated.
10.SUBSEQUENT DISTRIBUTIONS
Under the managed distribution plan, the Fund declared the following distributions to
common shareholders:
These distributions are not reflected in the accompanying financial
statements.
Allspring Income Opportunities Fund | 27
Other information (unaudited)
Other information
A description of the policies and procedures used to determine how to
vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-259-3305, visiting our website at allspringglobal.com, or visiting the SEC website at sec.gov. Information regarding how the
proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at allspringglobal.com or by visiting the SEC website at sec.gov.
Annual meeting of shareholders
On August 5, 2024, an Annual Meeting of Shareholders for the Fund was
held to consider the following proposal. The results of the proposal are indicated below.
Proposal 1 – Election of trustees:
Quarterly portfolio holdings information
The Fund files its complete schedule of portfolio holdings with the
SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website
at sec.gov.
Recent amendments to the Fund’s
by-laws
On December 19, 2023, with subsequent
additional amendments approved April 16, 2024, the Board of Trustees of the Fund approved the adoption of Amended and Restated By-Laws of the Fund (the
“By-Laws”). The By-Laws, among other things, contain modified procedural and informational requirements in connection with any advance notice of
shareholder proposals or nominations, including certain information about the proponent and the proposal, or in the case of a Trustee nomination, the nominee.
Any shareholder considering making a Trustee nomination or other proposal should carefully review and comply with those provisions of the By-Laws. Furthermore,
in determining whether a particular nominee is qualified to serve as a Trustee, the Board has an interest in the nominee’s background, skills, experience
and other attributes in light of the composition of the Board. The By-Laws now include qualifications and requirements for Trustee eligibility. Additionally,
the By-Laws have changed the voting standard required for election as a Trustee. The By-Laws now provide that the affirmative vote of a majority of shares
outstanding and entitled to vote in an election is required to elect a Trustee in a contested election with a plurality of shares outstanding required to elect
a Trustee in an uncontested election. The new voting standard will apply to all future elections of Trustees. The foregoing discussion is only a high-level
summary of certain aspects of the By-Laws and is qualified in its entirety by reference to the By-Laws. Shareholders should refer to the By-Laws for more
information, which can be found in a Current Report on Form 8-K filed by the Fund with the Securities and Exchange Commission (available at www.sec.gov).
Delaware statutory trust act – control share
acquisitions
Because the Fund is organized as a
Delaware statutory trust, it is subject to the control share acquisition statute (the “Control Share Statute”) contained in Subchapter III of the
Delaware Statutory Trust Act (the “DSTA”), which became automatically applicable to listed closed-end funds, such as the Fund, upon its effective date of August
1, 2022 (the “Effective Date”).
The
Control Share Statute provides for a series of voting power thresholds above which shares are considered control shares. The first such threshold is 10% or
more, but less than 15%, of all voting power. Voting power is defined by the Control Share Statute as the power to directly or indirectly exercise or direct
the exercise of the voting power of Fund shares in the election of trustees. Whether a voting power threshold is met is determined by aggregating the holdings of the acquirer
as well as those of its “associates,” as defined by the Control Share Statute.
Once a threshold is reached, an acquirer has no voting rights under the DSTA or the governing documents of the Fund with respect to shares acquired in excess of that threshold (i.e., the “control shares”) unless approved by shareholders or exempted by the Fund’s Board of Trustees. Approval by shareholders requires the affirmative vote of two-thirds of all votes entitled to be cast on the matter, excluding shares held by the acquirer and its associates as well as shares held by certain insiders of the Fund. The Control Share Statute provides procedures for an acquirer to request a shareholder meeting for the purpose of considering whether voting rights shall be accorded to control shares. Further approval by the Fund’s shareholders would be
28 | Allspring Income Opportunities Fund
Other information (unaudited)
required with
respect to additional acquisitions of control shares above the next applicable threshold level. In addition, the Fund’s Board of Trustees is permitted, but not
obligated to, exempt specific acquisitions or classes of acquisitions of control shares, either in advance or retroactively.
The Control Share Statute does not retroactively apply to acquisitions of shares that occurred prior to the Effective Date. However, such shares will be aggregated with any shares acquired after the Effective Date for purposes of determining whether a voting power threshold is exceeded, resulting in the newly acquired shares constituting control shares.
The Control Share Statute requires shareholders to disclose to the Fund any control share acquisition within 10 days of such acquisition and, upon request, to provide any information that the Fund’s Board of Trustees reasonably believes is necessary or desirable to determine whether a control share acquisition has occurred.
The foregoing is only a summary of certain aspects of the Control Share Statute. Shareholders should consult their own legal counsel to determine the application of the Control Share Statute with respect to their shares of the Fund and any subsequent acquisitions of shares.
Allspring Income Opportunities Fund | 29
Other information (unaudited)
Board of trustees and
officers
The following table provides basic information
about the Board of Trustees (the “Trustees”) and Officers of the Fund. Each of the Trustees and Officers listed below acts in identical capacities
for each fund in the Allspring family of funds, which consists of 92 mutual funds comprising the Allspring Funds Trust, Allspring Variable Trust, Allspring
Master Trust, and four closed-end funds, including the Fund (collectively the “Fund Complex”). The mailing address of each Trustee and Officer is
1415 Vantage Park Drive, 3rd Floor, Charlotte, NC 28203. The Board of Trustees is classified into three classes of which one is elected annually. Each Trustee
serves a three-year term concurrent with the class from which the Trustee is elected. Each Officer serves an indefinite term.
| |
|
Principal occupations during past five years or
longer |
Current other
public company
or
investment
company
directorships |
Class I - Non-Interested Trustees to serve until 2026 Annual Meeting of
Shareholders |
Isaiah
Harris, Jr.
(Born 1952) |
Trustee,
since 2010;
Audit Committee
Chair,
since 2019 |
Retired. Member of the Advisory Board of CEF of East Central Florida.
Chairman of the Board of CIGNA Corporation from 2009 to
2021, and Director from 2005 to 2008. From 2003 to 2011,
Director of Deluxe Corporation. Prior thereto, President and CEO of
BellSouth Advertising and Publishing Corp. from 2005 to
2007, President and CEO of BellSouth Enterprises from 2004 to
2005 and President of BellSouth Consumer Services from 2000 to 2003.
Emeritus member of the Iowa State University Foundation
Board of Governors. Emeritus Member of the Advisory board of
Iowa State University School of Business. Advisory Board Member, Palm
Harbor Academy (private school). Advisory Board Member,
Fellowship of Christian Athletes. Mr. Harris is a certified public
accountant (inactive status). |
|
David F.
Larcker
(Born 1950) |
|
Distinguished Visiting Fellow at the Hoover Institution since 2022. James
Irvin Miller Professor of Accounting at the Graduate School
of Business (Emeritus), Stanford University, Director of the
Corporate Governance Research Initiative and Senior Faculty of The Rock
Center for Corporate Governance since 2006. From 2005 to
2008, Professor of Accounting at the Graduate School of
Business, Stanford University. Prior thereto, Ernst & Young Professor
of Accounting at The Wharton School, University of Pennsylvania
from 1985 to 2005. |
|
Olivia S.
Mitchell
(Born 1953) |
|
International Foundation of Employee Benefit Plans Professor since 1993,
Wharton School of the University of Pennsylvania. Director
of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic
Research. Previously taught at Cornell University from 1978 to 1993.
|
|
Class II - Non-Interested Trustees to serve until 2027 Annual Meeting
of Shareholders |
William R.
Ebsworth
(Born 1957) |
|
Retired. From 1984 to 2013, equities analyst, portfolio manager, research
director and chief investment officer at Fidelity
Management and Research Company in Boston, Tokyo, and Hong
Kong, and retired in 2013 as Chief Investment Officer of Fidelity
Strategic Advisers, Inc. where he led a team of investment
professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International
Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire
Fidelity Investments Life Insurance Company. Serves on the
Investment Company Institute’s Board of Governors since
2022 and Executive Committee since 2023; and Chair of the
Governing Council of the Independent Directors Council
since 2024 and Vice Chair from 2023 to 2024. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Foundation (non-profit
organization). Mr. Ebsworth is a CFA charterholder. |
|
Jane A.
Freeman
(Born 1953) |
|
Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of
Scientific Learning Corporation. From 2008 to 2012, Ms.
Freeman provided consulting services related to strategic
business projects. Prior to 1999, Portfolio Manager at Rockefeller &
Co. and Scudder, Stevens & Clark. Board member of the
Harding Loevner Funds from 1996 to 2014, serving as both Lead
Independent Director and chair of the Audit Committee. Board member of
the Russell Exchange Traded Funds Trust from 2011 to 2012
and the chair of the Audit Committee. Ms. Freeman is also an
inactive Chartered Financial Analyst. |
|
* Length of service dates reflect the Trustee’s commencement of service with the
Trust’s predecessor entities, where applicable.
30 | Allspring Income Opportunities Fund
Other information (unaudited)
| |
Position held and
length of service* |
Principal occupations during past five years or
longer |
Current other
public company
or
investment
company
directorships |
Class III - Non-Interested Trustees to serve until 2028 Annual Meeting
of Shareholders |
Timothy J.
Penny
(Born 1951) |
Trustee,
since 2010;
Chair,
since 2018 |
President and Chief Executive Officer of Southern Minnesota Initiative
Foundation, a non-profit organization, since 2007. Vice
Chair of the Economic Club of Minnesota, since 2007. Co-Chair of the Committee for a Responsible Federal Budget, since 1995. Member of the Board of Trustees of
NorthStar Education Finance, Inc., a non-profit organization, from
2007-2022. Senior Fellow of the University of Minnesota Humphrey
Institute from 1995 to 2017. |
|
James G.
Polisson
(Born 1959) |
Trustee,
since 2018;
Nominating and
Governance
Committee Chair,
since 2024 |
Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from
2015 to 2017. From 2012 to 2015, Principal of The Polisson
Group, LLC, a management consulting, corporate advisory and
principal investing company. Chief Executive Officer and Managing
Director at Russell Investments, Global Exchange Traded
Funds from 2010 to 2012. Managing Director of Barclays
Global Investors from 1998 to 2010 and Global Chief Marketing Officer for
iShares and Barclays Global Investors from 2000 to 2010.
Trustee of the San Francisco Mechanics’ Institute, a non- profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust
from 2011 to 2012. Director of Barclays Global Investors Holdings
Deutschland GmbH from 2006 to 2009. Mr. Polisson is an
attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. |
|
Pamela Wheelock
(Born 1959) |
Trustee,
since January 2020;
previously Trustee from January 2018 to
July 2019 Chair Liaison,
since
July 2024 |
Retired. Executive and Senior Financial leadership positions in the public, private and nonprofit
sectors. Interim President and CEO, McKnight Foundation, 2020. Interim
Commissioner, Minnesota Department of Human Services, 2019.
Chief Operating Officer, Twin Cities Habitat for Humanity,
2017-2019. Vice President for University Services, University of Minnesota, 2012- 2016. Interim President and CEO, Blue Cross and Blue Shield of Minnesota, 2011-2012. Executive
Vice-President and Chief Financial Officer, Minnesota Wild, 2002-2008.
Commissioner, Minnesota Department of
Finance, 1999-2002. Chair of the Board of Directors of Destination Medical Center Corporation. Board member of the Minnesota Wild Foundation from 2009-2024. |
|
* Length of
service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
Allspring Income Opportunities Fund | 31
Other information (unaudited)
Officers1
| |
Position held and
length of
service |
Principal occupations during past five years or
longer |
| |
|
President and Chief Executive Officer of Allspring Funds Management, LLC
since 2017 and Head of Global Fund Governance of Allspring
Global Investments since 2022. Prior thereto, co-president of Galliard Capital Management, LLC, an affiliate of Allspring Funds Management, LLC, from 2019 to 2022 and Head of Affiliated
Managers, Allspring Global Investments, from 2014 to 2019 and Executive
Vice President responsible for marketing, investments and product
development for Allspring Funds Management, LLC, from 2009 to 2014. |
| |
|
President and Chief Executive Officer of Allspring Funds Management, LLC
since 2025 and Head of Strategic Initiatives of Allspring
Global Investments since 2022. Prior thereto, Independent Board Member for the Principal Funds from 2020 to 2022, Executive Vice President and Global Head of Affiliate Strategic Initiatives from 2015 to
2020 for Legg Mason Global Asset Management and Managing Director,
Corporate Strategy and Business Development from 2014 to 2015 for
Legg Mason Global Asset Management. |
Jeremy DePalma
(Born 1974) |
Treasurer,
since 2012
(for certain funds in
the Fund Complex);
since 2021 (for
the remaining funds
in the Complex) |
Senior Vice President of Allspring Funds Management, LLC since 2009.
Senior Vice President of Evergreen Investment Management
Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.
|
Christopher Baker
(Born 1976) |
Chief Compliance
Officer,
since 2022 |
Global Chief Compliance Officer for Allspring Global Investments since
2022. Prior thereto, Chief Compliance Officer for State
Street Global Advisors from 2018 to 2021. Senior Compliance Officer for the State Street divisions of Alternative Investment Solutions, Sector Solutions, and Global Marketing from 2015 to 2018. From 2010 to 2015
Vice President, Global Head of Investment and Marketing Compliance for State
Street Global Advisors. |
Matthew Prasse
(Born 1983) |
Chief Legal Officer,
since 2022;
Secretary,
since 2021 |
Managing Counsel of the Allspring Legal Department since 2023 (Senior Counsel from 2021 to 2023). Prior thereto,
Senior Counsel of the Wells Fargo Legal Department from 2018 to 2021.
Previously, Counsel for Barings LLC from 2015 to 2018. Prior to
joining Barings, Associate at Morgan, Lewis & Bockius LLP from 2008 to 2015. |
1 For those Officers with tenures at Allspring Global Investments and/or Allspring Funds Management, LLC that began prior to 2021, such tenures include years of service during which these businesses/entities were known as Wells Fargo Asset Management and Wells Fargo Funds Management, LLC, respectively.
2
Effective January 1, 2025, John Kenney will become President of the Trust and President and Chief Executive officer of Allspring Funds management, LLC.
32 | Allspring Income Opportunities Fund
Other information (unaudited)
Board consideration of investment
advisory and sub-advisory agreements:
Under the
Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of the Allspring Income Opportunities Fund (the “Fund”) must determine annually whether to approve the continuation of the Fund’s investment advisory and sub-advisory agreements. In this regard, at a Board meeting held on May 28-30, 2024 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Fund, as defined in the 1940 Act (the “Independent Trustees”), reviewed and
approved: (i) an investment advisory agreement with Allspring Funds Management, LLC (“Allspring Funds Management”); and (ii) an investment
sub-advisory agreement with Allspring Global Investments, LLC (the “Sub-Adviser”), an affiliate of Allspring Funds Management. The investment
advisory agreement with Allspring Funds Management and the investment sub-advisory agreement with the Sub-Adviser are collectively referred to as the
“Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Allspring Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a meeting of the Board held in April 2024, and at the Meeting, the Trustees conferred extensively among themselves and with representatives of Allspring Funds Management about these matters. The Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Allspring Funds Management and
the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees
at the start of the Board’s annual contract renewal process earlier in 2024. In considering and approving the Advisory Agreements, the Trustees
considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific
information presented in connection with the Meeting, but also the knowledge gained over time through interactions with Allspring Funds Management and the
Sub-Adviser about various topics. In this regard, the Board reviewed reports of Allspring Funds Management at each of its quarterly meetings, which included,
among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers
at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each
individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously determined that the compensation payable to Allspring Funds Management and the Sub-Adviser
under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year term. The Board considered
the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent, and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Allspring Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Allspring Global Investments, of which Allspring Funds Management and the Sub-Adviser are a part, and a summary of investments made in the Allspring Global Investments business.* The Board also received information about the services that continue to be provided by Wells
Fargo & Co. and/or its affiliates (“Wells Fargo”) since the sale of Wells Fargo Asset Management to Allspring Global Investments Holdings, LLC,
a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P., under a transition services agreement and an update on the anticipated timeline for exiting the transition services agreement. In addition, the Board received and considered information about the full range of services provided to the Fund by Allspring Funds Management and its affiliates.
The Board considered the additional services provided to the Fund due to the fact that the Fund is a closed-end fund, including, but not
limited to, leverage management and monitoring, evaluating, and, where appropriate, making recommendations with respect to the Fund’s trading discount,
share repurchase program, managed distribution program, and distribution rates, as well as shareholder relations activities.
The Board considered the qualifications, background, tenure, and
responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability
of Allspring Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory
personnel.
The Board further considered the
compliance programs and compliance records of Allspring Funds Management and the Sub-Adviser. The Board received and considered information about Allspring
Global Investments’ risk management functions, which included information about Allspring Funds Management’s and the Sub-Adviser’s business
continuity plans and their approaches to data privacy and cybersecurity and Allspring Funds Management’s role as fair valuation designee and derivatives
risk management program manager. The Board also received and considered information about Allspring Funds Management’s intermediary and vendor oversight
program.
*
The trade name for the asset management firm that includes Allspring Funds Management
and the Sub-Adviser is “Allspring Global Investments.”
Allspring Income Opportunities Fund | 33
Other information (unaudited)
Fund investment
performance and expenses
The Board considered the
investment performance results for the Fund over various time periods ended December 31, 2023. The Board considered these results in comparison to the
investment performance of funds in a custom peer group that included funds selected by Broadridge Inc. (“Broadridge”) and additional funds that
were determined by Allspring Funds Management to be similar to the Fund (the “Custom Peer Group”), and in comparison to the Fund’s benchmark
index and to other comparative data. The Board received a description of the methodology used by Broadridge and Allspring Funds Management to select the funds
in the Custom Peer Group and discussed the limitations inherent in the use of other peer Groups. The Board noted that the investment performance of the Fund
was higher than the average investment performance of the Custom Peer Group for all periods under review. The Board also noted that the investment performance
of the Fund was higher than its benchmark index, the ICE BofA U.S. High Yield Constrained Index, for all periods under review. It was noted that the Board had
previously approved certain investment strategy changes for the Fund and that those changes became effective on or about April 1, 2024.
The Board also received and considered information regarding the
Fund’s net operating expense ratio and its various components, including actual management fees, and custodian and other nonmanagement fees. The Board
considered this ratio in comparison to the median ratio of funds in the Custom Peer Group and in comparison to the median ratio of funds in an expense group
that was determined by Broadridge to be similar to the Fund (the “Broadridge Group”, and together with the Custom Peer Group, the “Expense
Groups”). Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge and
Allspring Funds Management to select the funds in the Expense Groups, and an explanation from Broadridge of how funds comprising Broadridge expense groups and
their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratio of the Fund was lower
than the median net operating expense ratios of the Expense Groups.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered
in deciding to re-approve the Advisory Agreements.
Investment advisory and sub-advisory fee rates
The Board reviewed and considered the contractual investment advisory fee rate that is payable by the Fund to Allspring Funds Management for investment advisory services (the “Advisory Agreement Rate”), both on a stand-alone basis and on a combined basis with the Fund’s contractual administration fee rate (the “Management Rate”). The Board also reviewed and considered the contractual investment sub-advisory fee rate that is payable by Allspring Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rate”).
Among other information reviewed by the Board was a comparison of the
Management Rate of the Fund with those of other funds in the Expense Groups at a common asset level. The Board noted that the Management Rate of the Fund was lower than the
average rates for its Expense Groups.
The Board
also received and considered information about the portion of the total advisory fee that was retained by Allspring Funds Management after payment of the fee
to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and
extent of responsibilities retained and risks assumed by Allspring Funds Management and not delegated to or assumed by the Sub-Adviser, and about Allspring
Funds Management’s on-going oversight services. Given the affiliation between Allspring Funds Management and the Sub-Adviser, the Board ascribed limited relevance to
the allocation of the advisory fee between them.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that
the Advisory Agreement Rate and the Sub-Advisory Agreement Rate were reasonable.
The Board received and considered information concerning the profitability of Allspring Funds Management, as well as the profitability of Allspring Global Investments, from providing services to the fund complex as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the complex was subsumed in the Allspring Global Investments profitability analysis.
Allspring Funds Management reported on the methodologies and
estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted
that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type, and age of fund.
Based on its review, the Board did not deem the profits reported by
Allspring Funds Management or Allspring Global Investments from services provided to the Fund to be at a level that would prevent it from approving the continuation of the
Advisory Agreements.
The Board received and considered information about the
potential for Allspring Funds Management to experience economies of scale in the provision of management services, the difficulties of isolating and
quantifying economies of scale on an individual fund level, and the extent to which potential scale benefits are shared with Fund shareholders. The Board noted
that the Fund is not engaged in a continuous offering that could help its assets grow, and that, as is typical of closed-end funds, there are no breakpoints in
the Management Rate. Although the Fund would not share in any potential economies
34 | Allspring Income Opportunities Fund
Other information (unaudited)
of scale through
contractual breakpoints, the Board noted that Allspring Funds Management shares potential economies of scale from its management business in a variety of ways,
including through fee waiver and expense reimbursement arrangements, competitive management fee rates set at the outset without regard to breakpoints, and investments in the
business intended to enhance services available to shareholders.
The Board concluded that Allspring Funds Management’s arrangements with respect to the Fund constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders. The Board also noted that it would have opportunities to revisit the Management Rate as part of future contract reviews.
Other benefits to Allspring Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Allspring
Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among
others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Allspring Funds
Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board also reviewed information about soft dollar
credits earned and utilized by the Sub-Adviser.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Allspring Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
At the Meeting, after considering the above-described factors and
based on its deliberations and its evaluation of the information described above, the Board unanimously determined that the compensation payable to Allspring
Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable, and approved the continuation of the Advisory Agreements for a one-year
term.
Allspring Income Opportunities Fund | 35
Automatic dividend reinvestment plan
Automatic dividend reinvestment
plan
All common shareholders are eligible to participate
in the Automatic Dividend Reinvestment Plan (“the Plan”). Pursuant to the Plan, unless a common shareholder is ineligible or elects otherwise, all
cash dividends and capital gains distributions are automatically reinvested by Computershare Trust Company, N.A., as agent for shareholders in administering
the Plan (“Plan Agent”), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend
(collectively referred to as “dividends”) payable either in shares or in cash, nonparticipants in the Plan will receive cash, and participants in
the Plan will receive the equivalent in common shares. The shares are acquired by the Plan Agent for the participant’s account, depending upon the
circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“newly issued common
shares”) or (ii) by purchase of outstanding common shares on the open-market (open-market purchases) on the NYSE Amex or elsewhere. If, on the payment
date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common share plus
estimated brokerage commissions (“market premium”), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares
on behalf of the participant. The number of newly issued common shares to be credited to the participant’s account will be determined by dividing the
dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current
market price per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market
value (“market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participant in open-market purchases.
There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in
shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market
purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not relieve participants of any
federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be
directed to the Plan Agent at P.O. Box 505000, Louisville, Kentucky 40233 or by calling 1-800-730-6001.
36 | Allspring Income Opportunities Fund
Transfer Agent, Registrar, Shareholder
Servicing
Agent & Dividend Disbursing Agent
Computershare Trust Company, N.A.
P.O. Box 505000
Louisville, Kentucky 40233
1-800-730-6001
Website: allspringglobal.com
Allspring Global InvestmentsTM is the trade name for the asset management firms of Allspring Global
Investments Holdings, LLC, a holding company indirectly owned by certain private funds of GTCR LLC and Reverence Capital Partners, L.P. These firms include but
are not limited to Allspring Global Investments, LLC, and Allspring Funds Management, LLC. Certain products managed by Allspring entities are distributed by Allspring Funds
Distributor, LLC (a broker-dealer and Member FINRA/SIPC).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind - including a
recommendation for any specific investment, strategy, or plan.
© 2024 Allspring Global Investments Holdings, LLC. All rights reserved.
ALL-10302024-3gsubbmr 12-24
SAR156 10-24
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES
AND SERVICES
Not applicable.
ITEM 5. AUDIT
COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for
Allspring Income Opportunities Fund is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. FINANCIAL STATEMENTS
AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 11. STATEMENT REGARDING BASIS FOR
APPROVAL OF INVESTMENT ADVISORY CONTRACT
The registrant’s statement regarding basis for approval of investment advisory contract is included as
part of the Report to Shareholders filed under Item 1 of this Form.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. PORTFOLIO MANAGERS
OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
|
|
(b) |
|
|
(c) |
|
|
(d) |
|
| Period |
|
Total
Number
of Shares
Purchased |
|
|
Average
Price Paid
per Share |
|
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
or Programs |
|
|
Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans or
Programs |
|
| 5/1/2024 to 5/31/2024 |
|
|
0 |
|
|
$ |
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| 6/1/2024 to 6/30/2024 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| 7/1/2024 to 7/31/2024 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| 8/1/2024 to 8/31/2024 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| 9/1/2024 to 9/30/2024 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| 10/1/2024 to 10/31/2024 |
|
|
0 |
|
|
|
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
| Total |
|
|
0 |
|
|
$ |
0.00 |
|
|
|
0 |
|
|
|
2,955,285 |
|
On November 15, 2023, the Fund announced a renewal of its open-market share repurchase program (the “Buyback
Program”). Under the renewed Buyback Program, the Fund may repurchase up to 5% of its outstanding shares in open market transactions during the period beginning on January 1, 2024 and ending on December 31, 2024. The Fund’s Board
of Trustees has delegated to Allspring Funds Management, LLC, the Fund’s adviser, discretion to administer the Buyback Program, including the determination of the amount and timing of repurchases in accordance with the best interests of the
Fund and subject to applicable legal limitations.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been
implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
ITEM 16. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Allspring Income Opportunities Fund (the “Fund”) disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Fund is made known to them by the appropriate persons
based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes
in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 17. DISCLOSURES OF SECURITIES LENDING ACTIVITES
FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
Not applicable.
ITEM 19. EXHIBITS
(a)(1) Not applicable.
(a)(2) Not applicable.
(a)(3) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2022.
(a)(4) Not applicable.
(a)(5) Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2022.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
| Allspring Income Opportunities Fund |
|
|
| By: |
|
/s/ Andrew Owen |
|
|
Andrew Owen |
|
|
President (Principal Executive Officer) |
|
| Date: December 24, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report
has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
|
|
|
| Allspring Income Opportunities Fund |
|
|
| By: |
|
/s/ Andrew Owen |
|
|
Andrew Owen |
|
|
President (Principal Executive Officer) |
|
| Date: December 24, 2024 |
|
|
| By: |
|
/s/ Jeremy DePalma |
|
|
Jeremy DePalma |
|
|
Treasurer (Principal Financial Officer) |
|
| Date: December 24, 2024 |
Exhibit 19(a)(3)
CERTIFICATION
I, Andrew Owen, certify that:
1. I have reviewed this report on
Form N-CSRS of Allspring Income Opportunities Fund.
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s
Board of Trustees (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant’s internal controls over financial reporting.
Date: December 24, 2024
|
| /s/ Andrew Owen |
| Andrew Owen |
| President (Principal Executive Officer) |
| Allspring Income Opportunities Fund |
CERTIFICATION
I, Jeremy DePalma, certify that:
1. I have reviewed this report
on Form N-CSRS of Allspring Income Opportunities Fund.
2. Based on my knowledge, this report does not
contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the
Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;
c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing of this report based on such evaluation; and
d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period
covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s
Board of Trustees (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant’s internal controls over financial reporting.
Date: December 24, 2024
|
| /s/ Jeremy DePalma |
| Jeremy DePalma |
| Treasurer (Principal Financial Officer) |
| Allspring Income Opportunities Fund |
Exhibit 19(b)
SECTION 906 CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Allspring Income Opportunities Fund, hereby certifies, to the best of his
knowledge, that the registrant’s report on Form N-CSRS for the six months ended October 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or
Section 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
Date: December 24, 2024
|
|
|
| By: |
|
/s/ Andrew Owen |
|
|
Andrew Owen |
|
|
President (Principal Executive Officer) |
|
|
Allspring Income Opportunities Fund |
This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with
the Securities and Exchange Commission.
SECTION 906 CERTIFICATION
Pursuant to 18 U.S.C. § 1350, the undersigned officer of Allspring Income Opportunities Fund, hereby certifies, to the best of his
knowledge, that the registrant’s report on Form N-CSRS for the six months ended October 31, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or
Section 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
Date: December 24, 2024
|
|
|
| By: |
|
/s/ Jeremy DePalma |
|
|
Jeremy DePalma |
|
|
Treasurer (Principal Financial Officer) |
|
|
Allspring Income Opportunities Fund |
This certification is being furnished to the Securities and Exchange Commission pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSRS with
the Securities and Exchange Commission.
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