Allspring Global Investments Expands into Active ETFs

Allspring Global Investments, a leading asset manager overseeing $570 billion in assets under advisement, has announced its plans to enter the active ETF market. With $423 billion in fixed-income and money market assets, $135 billion in equity assets, and $12 billion in multi-assets, the firm is poised to bring its expertise and experience into the expanding world of active ETFs.

Strategic Approach to Active ETFs

The company’s executives stated, “We believe the active ETF industry will continue to evolve, and we are taking a thoughtful approach, evaluating expansion opportunities across strategies managed by our investment teams with strong track records and deep investment experience.” This strategic move reflects Allspring’s commitment to providing innovative investment solutions to its clients.

Leadership in ETF Expansion

Rick Genoni, Allspring’s global head of product development and innovation, will spearhead the firm’s entry into the ETF space. With a proven track record in the industry, including roles at Franklin Templeton and Legg Mason, Genoni brings a wealth of experience to the table. Allspring also plans to onboard executives to oversee ETF capital markets and operations, further strengthening its position in the market.

Exemptive Relief for Dual-Share Mutual Funds/ETFs

This week, Allspring filed a request with the SEC for exemptive relief to offer a dual-share mutual fund/ETF asset class. This strategic move aligns with the company’s goal of expanding its product offerings and providing investors with innovative investment options. By exploring this new asset class, Allspring aims to attract a broader range of clients while leveraging scale and tax efficiencies.

Industry Trends and Opportunities

Allspring’s move to offer dual-share mutual funds/ETFs follows a growing trend in the asset management industry. Vanguard, the pioneer in this strategy, has seen its patent expire, opening the door for other asset managers like Allspring to explore this approach. With companies like PGIM, Fidelity Investments, Morgan Stanley Investment Management, and Dimensional Fund Advisors also expressing interest, the landscape of dual-share mutual funds/ETFs is set for expansion.

Conclusion

As Allspring Global Investments prepares to venture into the active ETF space and explore dual-share mutual funds/ETFs, the company demonstrates its commitment to innovation and client-centric offerings. By leveraging its expertise and strategic approach, Allspring aims to enhance its product lineup, attract new investors, and position itself as a prominent player in the evolving asset management industry.