Allspring Strategic Municipal Bond Fund - Class C (DHICX)

Overview

The fund focuses on investing primarily in municipal securities which are exempt from regular federal income tax. Despite this tax-exempt status, these investments are not necessarily excluded from the federal alternative minimum tax (AMT). By dedicating at least 80% of its net assets towards these municipal securities, the fund seeks to provide its investors with tax-advantaged income. Additionally, the fund is willing to invest up to 35% of its total assets in municipal securities that are considered below investment-grade. This strategic blend of investments aims to strike a balance between seeking higher returns through riskier bonds and maintaining a core of tax-exempt income.

Products and Services

• Municipal Securities Investment:

  Investing primarily in municipal securities that are exempt from regular federal income tax, this service caters to investors looking for tax-advantaged income opportunities. These securities include bonds issued by states, territories, and possessions of the United States and are chosen with a focus on those exempt from regular federal income tax, albeit they may still be subject to the federal AMT.

• Below Investment-Grade Municipal Securities:

  In search of higher yield potentials, the fund allocates up to 35% of its total assets in below investment-grade municipal securities. While these carry higher risks due to their lower credit quality, they can offer higher returns compared to investment-grade securities, thus appealing to investors with a higher risk tolerance seeking to diversify their portfolio with tax-exempt income.