Home Fixed income investment strategies Preferred and Capital Securities

How preferred and capital securities can benefit your fixed income portfolio
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Preferred and Capital Securities

Finding higher-quality issuers throughout the preferred and capital securities universe, while diversifying across the credit spectrum.

Strategy differentiators

Active management based on specialized research and dynamic security selection to manage complex global markets.

An emphasis on capital preservation equates to higher quality and capital structure bias, seeking to deliver a low volatility profile and attractive risk-adjusted returns.

Deep and broad experience analyzing, managing, and pricing complex security structures across a variety of credit, interest rate, and regulatory conditions.

Investing down the capital structure by focusing on higher-quality issuers, while avoiding unrated securities.

Strategy facts

Manager

Spectrum Asset Management

Inception

1 January 2000

Index

ICE BofA U.S. All Capital Securities Index

Targeted number of holdings

n/a

Expected turnover

n/a

Investment vehicles

ETF, IMA, SMA, UCITS Fund, U.S. Mutual Fund

Portfolio management
Spectrum Asset Management

Extensive experience managing global preferred and capital securities with a robust fundamental credit research approach, including both top-down and bottom-up analyses that lead to selective and thoughtful portfolio construction.

Mark Lieb
Mark A. Lieb
Founder, President & CEO
49 years of experience
Phillip Jacoby
Lewis Jacoby
Executive Director & CIO
44 years of experience
kevin
Kevin Nugent
Vice President, Portfolio Manager
42 years of experience
Fernando Diaz
Fred Diaz
Senior Vice President - Portfolio Management
34 years of experience
Roberto Giangregorio
Bob Giangregorio
Senior Vice President - Portfolio Management
23 years of experience
Manu Krishnan
Manu Krishnan, CFA
Deputy Chief Investment Officer
22 years of experience
satomi
Satomi Yarnell
Assistant Vice President, Portfolio Manager
17 years of experience

No information

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Past performance does not guarantee future results.

Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Risks of preferred securities differ from risks inherent in other investments. In a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Preferreds also contain risks including coupon deferral risk, credit risk, call risk, conversion risk and write-down risk.

Investment guidelines are subject to change.

Not all investment options are available in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.

Spectrum Asset Management, Inc., is an affiliate of Principal Global Investors.

Spectrum Preferred and Capital Securities is a marketing term representative of the Spectrum Intermediate Duration Preferred Securities Institutional composite. The data shown here is for the composite.

The ICE BofA U.S. All Capital Securities Index tracks the performance of fixed rate, U.S. dollar denominated hybrid corporate and preferred securities publicly issued in the U.S. domestic market.