Spectrum was founded in 1987 and specializes in the management of portfolios of preferred
securities and other junior subordinated capital securities including contingent convertible capital
securities (collectively referred to herein as junior subordinated capital securities). These are
generally some of the highest-yielding investment grade and below investment grade securities in
the U.S. and E.U. capital markets. Spectrum also manages portfolios that include various
derivatives-based volatility mitigation strategies relative to interest rate, credit, and broad market
volatility. Spectrum manages portfolios for a global universe of corporate, pension fund, insurance
and endowment clients, open-end mutual funds and exchange traded funds, including those
distributed by Principal Funds, and closed-end mutual funds domiciled in the United States, Ireland
(“UCITS”) and Japan, and separately managed account programs for high- net-worth individual
investors sponsored by a variety of broker-dealers, and distributed by Principal Asset
Management. Spectrum is one of the largest investment advisers in the world specializing in the
preferred securities and other junior subordinated capital securities market with $19,017,299,092
in assets under management
as of 12/31/23. Of this amount, discretionary assets totaled
$14,552,307,023 and non-discretionary assets totaled $4,464,992,069.
Spectrum was acquired in 2001 by PGI, (which as of 4Q 2022 does business as Principal Asset
Management) the asset management arm of The Principal Financial Group® (“PFG”). Spectrum is
wholly owned by Principal Global Investors Holding Company (US), LLC, which is wholly owned by
Principal Financial Services, Inc. (“PFSI”). PFSI is wholly owned by PFG. The Principal Financial
Group was established in 1879 and became a public company listed on the New York Stock
Exchange in 2001 under the ticker symbol PFG.
Spectrum is an investment adviser registered with the SEC and is the 100% owner of SAMI
Brokerage LLC, its affiliated broker/dealer member firm of the Financial Industry Regulatory
Authority (“FINRA”).
Spectrum is an investment manager for the separately managed account/wrap fee programs
("wrap programs") listed in Schedule D, Section 5.I(2) of Spectrum's Form ADV Part 1, including
wrap programs created and/or serviced by the financial institutions listed in Schedule D, Section
5.I(2) of Spectrum's Form ADV Part 1 that are "private-labeled" by third parties. (See Item 5 below
for a description of these services.)