Allspring Global Investments is terminating its alternative equity team, the last vestiges of the Analytic Investors quantitative boutique the Charlotte, N.C.-based firm acquired in October 2016, according to an internal message obtained by Pensions & Investments.
The message from Kate Burke, Allspring’s president, and Jon Baranko, the firm’s chief investment officer, dated Feb. 13, said Allspring had made the “difficult decision” to discontinue all strategies managed by the team.
“Allspring and the Alternative Equity team will be working through a transition with all of our clients and employees through the end of the second quarter of 2025,” the message said.
According to sources familiar with the situation, who declined to be named, the alternative equity team manages about $5 billion in client assets, roughly a third of the $15 billion in AUM cited in the October 2016 news release about the original acquisition.
Altogether, Allspring will be letting go four portfolio managers, three analysts, three client service professionals and two traders.
Information on Allspring’s website identified the portfolio managers as Harin de Silva, the founder of Analytic Investors counted among the pioneers of quant segments such as low volatility and 130/30 extension strategies; and portfolio managers Ryan Brown, Kevin Cole and David Krider.
The Feb. 13 message said Allspring will be “in a constant state of evolution in alignment with the nature of an ever-evolving industry.”
Allspring spokeswoman Melissa Murphy said in an email: "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. We will continue to concentrate our resources on our highest-conviction strategies across equity and fixed-income markets to be well positioned to meet clients’ needs."
Allspring Global’s website said the firm had $605 billion in AUM as of Dec. 31.
