Spectrum, which has nearly $1 billion in assets under management, will function as an affiliate of Principal Capital, which manages over $100 billion in total affiliated assets. Principal Capitals current affiliates include
Spectrums preferred securities expertise will be a good compliment to Principal Capitals existing offerings, according to Dennis Francis, CEO of Principal Capital.
Institutional investors are increasingly purchasing preferred securities because they have attractive yields, low volatility and diversification benefits, he said in a statement.
Becoming a principal affiliate is advantageous for Spectrum because the asset manager will add resources and expertise in areas such as distribution, institutional client services, and credit research, said Mark Lieb, CEO of Spectrum.