Masters in Business with Kate Burke: Building an Asset Allocation Strategy

Podcast: Masters in Business
Host: Barry Ritholtz (Bloomberg)
Guest: Kate Burke, CEO of Allspring Global Investments
Date: January 30, 2026

Episode Overview

This episode features Barry Ritholtz in conversation with Kate Burke, CEO of Allspring Global Investments. Burke, who oversees approximately $635 billion in client assets, discusses her multifaceted career across roles such as COO, CFO, and Chief Talent Officer at both Alliance Bernstein and Allspring. The episode delves into building effective leadership, asset allocation strategies, the evolution of fixed income, working with Registered Investment Advisors (RIAs), and the integration of technology and AI in asset management. Burke also offers advice for young professionals and shares her outlook on current market trends and the future of investment management.

Key Discussion Points & Insights

Kate Burke's Unconventional Career Path and Early Interest in Finance

• Background: Raised in Rochester, MN, without a local finance culture, Burke developed curiosity about investing from her self-taught investor father.

  “I'm one of five kids. My dad would talk me through the decisions he was making even though he was a self taught investor as well. And that was really the first interest I had.” (03:00)

• First Steps: Took a teller job at a bank at 18, then eventually gravitated towards investor relations at Tommy Hilfiger after college.

• Transition to Consulting: Post-MBA, she joined A.T. Kearney, learning crucial practical applications of business theory.

From Alliance Bernstein to Allspring: Leadership Growth

• Time at Alliance Bernstein ("A.B."): Entered through research, shifting through roles including COO, CFO, and notably Chief Talent Officer, despite initial hesitancy.

  “I came up with the phrase return on invested time... you're asking them to invest their time. So you better have a return on it.” (08:30)

• Measuring ‘Squishy’ Outcomes: Described using retention and promotion rates, cultural surveys, and leadership adaptability as key metrics for talent management.

  "The number one lesson... the leader has to be the chameleon to your team." (10:20)

• Asset Manager as Talent Business: Reiterated that, in asset management, talent is the only asset.

Path to Allspring Global Investments

• Recruitment: Initially declined a headhunter’s approach, but was persuaded by the potential of Allspring—a rebrand from Wells Fargo Asset Management holding $635B AUM, majority in fixed income.
• Transforming the Organization: Focus on integrating previous boutique investment teams and leveraging cross-team insights, while preserving PM autonomy.

  “What people are buying from them is that that…the portfolio managers still have the autonomy to make those choices…I believe that firmly, but that doesn't mean that they can't talk to each other.” (25:10)

Asset Allocation: Fixed Income’s Resurgence and Asset Flows

• Fixed Income Strategies: As interest rates have climbed, fixed income is seeing renewed focus. Allspring’s broad fixed income platform (over $400B AUM) spans high yield to liquidity/money markets.

  "Fixed income was out of favor for a period of a period of time. I think we're back in the age of fixed income for quite a while now." (28:18)

• Wealth Life Stages & Portfolio Construction: Emphasized the shifting priorities from accumulation to preservation to income to legacy, mapping allocation strategies accordingly.

• Role of Advisors: Strong relationships with RIAs and intermediaries like Wells Fargo Advisors, Morgan Stanley, and others, tailoring support as the RIA landscape evolves.

Market Outlook and Evolving Client Demands (2026)

• Yield Curve, Stagflation, and Debt Servicing: Discussed the importance of positioning portfolios to benefit from changes in the curve, particularly as long-term rates steepen and governments manage higher debt servicing costs.

  "We expect the curve to steepen…long end of the curve to steepen…so playing that intermediate part of the curve we think is going to be really important." (35:00)

Active Management, Public vs. Private Markets, and Alternatives

• Active Fixed Income Outperformance: Allspring's active fixed income products have outperformed benchmarks over 3, 5, and 10 years, highlighting the value of deep credit research.

  “Over 90% of our fixed active fixed income outperform on a 3, 5 and 10 year basis.” (37:41)

• Private Credit Skepticism: While acknowledging its place, Burke notes the growing competition, the importance of understanding liquidity and fees, and why most clients should remain cautious about large allocations to illiquid alternatives.

  “That’s why we are staying in the public side. We think liquidity is really important.” (42:03)
  "I'm just not sure what we're trying to solve for the client…that they need to have a significant allocation." (43:58)

• Customization at Scale: The future is crafting individualized investment solutions using technology, suited to each client’s distinct needs.

Organizational Philosophy: The “Easiest Manager to Work With”

• Defining ‘Easy’: Accessibility to PMs, streamlined onboarding, efficient technology, and proactive client service are pillars of client loyalty and retention.

  “Clients are no different in asset management... It means accessibility to our portfolio managers…getting the right information... leveraging technology.” (46:22)

Technology & AI in Wealth Management

• AI Integration:
  • General Efficiency: Using tools like ChatGPT for research and writing efficiency.
  • Strategic Partnerships: Collaborating with AI-focused partners, emphasizing clean data.
  • Proprietary Agentic AI: Developing Allspring-specific tools to answer business-specific problems.

  “You need, if you’re going to query data…the data better be right, otherwise you’re going to get the hallucinations and false findings.” (49:10)

Culture & Leadership

• Client-First Ethos: Survey feedback and internal culture denote high client centricity as the “north star.”
• Niceness and 'Credible Challenge': Emphasizes optimism, camaraderie, and a “public and in the room” debate culture.

  "...Credible challenge. You have to have it public and in the room, not in the conversation after the conversation." (51:45)

Under-Discussed Issues: Energy Demands of AI

• AI's Energy Consumption: Burke notes the need for more discussion around the energy grid and infrastructure required to support AI evolution.

  “The other part of AI that I think has not gotten a lot of conversation yet is how much energy it uses.” (52:52)

Notable Quotes & Memorable Moments

• On Talent Management:
  "Your role as chief talent officer, which an asset manager, when all that you have is your talent... is an incredibly critical job." (07:16)

• On Leadership Transition:
  "You as a leader have to be the chameleon to your team... That was really powerful because I think it creates this opportunity for you to bring together a really diverse group of talent." (10:25)

• On Asset Allocation for Stages of Life:
  "In the very beginning, it is simply about…accumulating…then you start to move into…preservation…then they move into retirement and they need income…then the last stage is legacy." (30:09)

• On Private Credit:
  "If you look at future returns, what happens with the basic law of supply and demand, you have a lot more people supplying liquidity…those spreads are likely to come down." (39:23)

• On Culture:
  "Being positive, optimistic, nice to each other is really important. You want to build camaraderie, especially when you're building a new organization." (50:32)

• On AI and Energy:
  "There's a lot of infrastructure build that's going to have to happen for the dream of AI to be successful." (52:52)

Timestamps for Important Segments

• Career Beginnings & Early Interest in Finance – (02:08 – 05:41)
• Chief Talent Officer: Leadership & Talent Management – (06:56 – 12:19)
• Transition from Alliance Bernstein to Allspring – (13:32 – 16:03)
• Allspring’s History and Structure – (24:13 – 25:25)
• Fixed Income Strategies & Asset Allocation – (27:33 – 30:09)
• RIAs & Distribution Partnerships – (31:45 – 34:12)
• Market Trends (2026): Yield Curve, Stagflation – (34:32 – 36:13)
• Active vs. Passive Management – (37:41 – 39:09)
• Private Credit & Alternatives Discussion – (39:23 – 44:09)
• Customization at Scale in Wealth Management – (44:25 – 45:47)
• Client Centricity & Being Easy to Work With – (46:22 – 48:18)
• AI Adoption & Technology in Asset Management – (48:18 – 50:09)
• Culture & Credible Challenge – (50:09 – 52:26)
• Energy Needs of AI – (52:41 – 53:20)
• Personal Mentors & Board of Directors Approach – (53:34 – 55:15)
• Advice to New Professionals & Compounding – (57:29 – 58:33)

Advice and Reading Recommendations

• Networking & Self-Learning:
  “Network, Network, Network... take control of your career and always be learning...” (57:29)

• Power of Compounding:
  “This is true for all... the power of compounding that comes up all the time...” (58:24)

• Books:

  • Trust by Hernan Diaz – a Pulitzer-winning historical fiction on the power of narrative and self-belief. (55:20)

• Entertainment:

  • Stranger Things (Netflix): For nostalgia and lessons in teamwork and perseverance. (56:22)

Final Takeaway

Kate Burke’s leadership philosophy centers on adaptability, curiosity, and relentless focus on client and talent. She voices caution on illiquid alternatives for most investors, touts the resurgence of fixed income, and places a premium on technological and cultural evolution. Her insights are both practical and visionary—valuable for anyone shaping, or navigating, the modern investment landscape.