Allspring Diversified Capital Builder Fund Q3 2025 Commentary
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Allspring Global Investments25 FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe fund outperformed its benchmark, the Diversified Capital Builder Blended Index, in the third quarter of 2025.With further economic growth and relatively stable interest rates, we expect a continued favorable backdrop for both the equity and fixed income markets.Our asset allocation continued to be weighted toward equities, with stocks comprising 84.1% of total holdings at quarter-end.High yield securities and junk bonds have a greater risk of default and tend to be more volatile than higher-rated securities. Olemedia/E+ via Getty Images Quarterly review The fund outperformed its benchmark, the Diversified Capital Builder Blended Index, in the third quarter of 2025. The fund's equity portion outperformed its benchmark, the Russell 1000 Index. The portfolio's fixed income holdings This article was written byAllspring Global Investments25 FollowersFollowAllspring is a company committed to thoughtful investing, purposeful planning, and the desire to elevate investing to be worth more. Allspring is reimagining investment management to be worth more—creating an investment, distribution, and operational experience that changes the game for clients. Note: This account is not managed or monitored by Allspring, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Allspring's official channels.Quick InsightsWhat drove EKBYX's outperformance versus its blended benchmark in Q3 2025?Outperformance was led by overweight positions in information technology and industrials, strong stock selection within these sectors, and underweighting financials and consumer staples.How is EKBYX positioned between equities and fixed income, and what is the forward outlook?The fund is 84.1% equities and 15.1% fixed income, expecting equities to outperform fixed income; fixed income is positioned for income, not capital appreciation, with a bias toward higher-quality BB-rated bonds.What are the key risks and potential catalysts for EKBYX going forward?Potential catalysts include further rate cuts and economic growth supporting equities; risks involve underperformance of higher-quality bonds if lower-rated credits continue to outperform, and sector-specific volatility.Recommended For You