Key Takeaways
- • Allspring Global Investments is dissolving its alternatives equity team, with all four portfolio managers—Ryan Brown, David Krider, Kevin Cole, and co-head Harindra de Silva—departing in June 2025.
- • The firm is liquidating the $403 million Allspring Global Long/Short Equity fund (AGAQX) on April 7, 2025, and reassigning the $247 million Allspring Large Company Value fund (WLCAX) to its special global equity team with new portfolio managers effective March 24.
- • Three-year performance underperformance and persistent outflows drove the decision: AGAQX returned 2.01% annualized versus its 7.28% category average; WLCAX returned 8.08% versus its 8.86% peer average, though WLCAX rebounded in 2024 with 17.76% returns.
- • The closure reflects broader industry fee pressure and represents the dissolution of assets acquired through Allspring's prior acquisition of the Analytic Investors quantitative boutique.
- • Allspring is restructuring to consolidate around its core competencies in active equity and fixed income strategies across a unified investment platform.
Summary
Allspring Global Investments is dissolving its alternatives equity team effective June 2025, discontinuing all alternative equity strategies and removing four portfolio managers from the firm. The four-person team—comprising Ryan Brown, David Krider, Kevin Cole, and co-head Harindra de Silva—will depart as Allspring exits the alternative equity space entirely.
The firm will liquidate its $403 million Allspring Global Long/Short Equity fund (AGAQX) on April 7, 2025. Simultaneously, Allspring is transferring its $247 million Allspring Large Company Value fund (WLCAX) to its special global equity team, effective March 24, with portfolio management duties reassigning to James Tringas, Shane Zweck, and Bryant VanCronkhite. These represent the only two funds currently managed by the alternatives equity team.
Performance and fee pressures were the primary drivers of this decision. Over the three-year period, AGAQX generated annualized returns of just 2.01%, trailing its Morningstar Long Short Equity category average of 7.28% by a significant margin. WLCAX performed marginally better at 8.08% annualized returns, but still lagged its Large Value peer category average of 8.86%. However, WLCAX demonstrated improvement in 2024, posting 17.76% annualized returns versus the category average of 14.28%. Both funds have experienced persistent outflows over an extended period. According to sources cited by Citywire, fee pressure, poor performance, and declining assets prompted management to eliminate the team.
In its statement, Allspring emphasized its strategic pivot toward consolidation: "We've made the difficult decision to discontinue our alternative equity strategies, and our alternative equity team will depart the firm this June. Allspring is committed to offering one unified investment platform with a variety of solutions across asset classes and vehicles. Our focus remains on our core foundational competencies centered on active strategies across equity and fixed income markets." The closure effectively represents the dissolution of remaining assets from Allspring's prior acquisition of the Analytic Investors quantitative boutique, marking a significant strategic retreat from the alternative equity space three years after Allspring's 2021 independence from Wells Fargo.
The firm will liquidate its $403 million Allspring Global Long/Short Equity fund (AGAQX) on April 7, 2025. Simultaneously, Allspring is transferring its $247 million Allspring Large Company Value fund (WLCAX) to its special global equity team, effective March 24, with portfolio management duties reassigning to James Tringas, Shane Zweck, and Bryant VanCronkhite. These represent the only two funds currently managed by the alternatives equity team.
Performance and fee pressures were the primary drivers of this decision. Over the three-year period, AGAQX generated annualized returns of just 2.01%, trailing its Morningstar Long Short Equity category average of 7.28% by a significant margin. WLCAX performed marginally better at 8.08% annualized returns, but still lagged its Large Value peer category average of 8.86%. However, WLCAX demonstrated improvement in 2024, posting 17.76% annualized returns versus the category average of 14.28%. Both funds have experienced persistent outflows over an extended period. According to sources cited by Citywire, fee pressure, poor performance, and declining assets prompted management to eliminate the team.
In its statement, Allspring emphasized its strategic pivot toward consolidation: "We've made the difficult decision to discontinue our alternative equity strategies, and our alternative equity team will depart the firm this June. Allspring is committed to offering one unified investment platform with a variety of solutions across asset classes and vehicles. Our focus remains on our core foundational competencies centered on active strategies across equity and fixed income markets." The closure effectively represents the dissolution of remaining assets from Allspring's prior acquisition of the Analytic Investors quantitative boutique, marking a significant strategic retreat from the alternative equity space three years after Allspring's 2021 independence from Wells Fargo.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.