Strategy. Under normal circumstances, we invest: at least 80% of the Funds net assets in debt securities that are below-investment grade; and up to 10% of the Funds total assets in equity securities, including common and preferred stocks. We invest principally in below investment-grade debt securities (often called high yield securities or junk bonds) of corporate issuers. These include traditional corporate bonds as well as convertible bonds. These securities may have fixed, floating or variable rates. We may invest in below investment-grade debt securities of any credit quality. The average credit quality of the Funds portfolio is expected to be equivalent to B or higher based on the credit ratings assigned to underlying securities by Moodys, Standard & Poors, from other … Show more… Under normal circumstances, we invest: at least 80% of the Funds net assets in debt securities that are below-investment grade; and up to 10% of the Funds total assets in equity securities, including common and preferred stocks. We invest principally in below investment-grade debt securities (often called high yield securities or junk bonds) of corporate issuers. These include traditional corporate bonds as well as convertible bonds. These securities may have fixed, floating or variable rates. We may invest in below investment-grade debt securities of any credit quality. The average credit quality of the Funds portfolio is expected to be equivalent to B or higher based on the credit ratings assigned to underlying securities by Moodys, Standard & Poors, from other Nationally Recognized Statistical Ratings Organizations, or our credit quality assessment of the underlying securities. We expect the Funds average effective duration to generally be within 1.0 year of the benchmarks duration. We may also use futures for duration and yield curve management. We may invest up to 15% of the Funds total assets in leveraged loans. We may invest up to 10% of the Funds total assets in equity securities, including common and preferred stocks. The criteria and investment process used to select equity securities is substantially similar to those used to select non-investment grade debt securities. We seek out companies that we believe have strong fundamental and valuation attributes, including companies that reorganized and emerged or are expected to emerge from bankruptcy. We may invest in equity securities of companies of any size. Securities in the Funds portfolio may be issued by domestic or foreign issuers (including foreign governments), and may include securities of emerging markets issuers. The Fund may invest up to 10% of the Funds total assets in foreign currency-denominated fixed income securities issued by foreign or domestic issuers. We use security selection, comprehensive research and tactical portfolio management to capitalize on opportunities in rapidly evolving credit markets. Our investment process features tactical levers, including security selection, sector reviews, our proprietary RADS calibration tool, and macro insights, and a 6-month horizon to seize market opportunities, identify relative value, and construct a diversified portfolio. We regularly review sectors to assess industry fundamentals and relative valuation to generate sector thesis and targeted sector weights. Our proprietary RADS Calibration tool divides the high yield market into quadrants based on spread and duration, and helps us connect investment ideas to tactical levers, and to ensure individual investments contribute to key portfolio objectives. We develop investment themes harnessing macro and fundamental insights developed from across the Allspring Fixed Income Platform. We employ a 6-month horizon to identify bonds with spread tightening catalysts and anticipate market inflection points. We seek diversified sources of alpha and to capitalize on mispriced risk in the leverage finance markets. We regularly review the investments of the portfolio and may sell a portfolio holding when it has achieved its valuation target, there is deterioration in the underlying fundamentals of the business, or we have identified a more attractive investment opportunity. Show less