Expertise and Experience
Spectrum manages portfolios of preferred and capital securities for an international universe of corporate, pension fund, insurance and endowment clients, open-end and closed-end mutual funds domiciled in the United States, Ireland and Japan, an ETF domiciled in the United States, and separately managed account programs for high net worth individual investors sponsored by a variety of broker-dealers.
Spectrum has produced a record of strong performance by consistently implementing its fundamental credit-based investment philosophy, leveraging its expertise in capital structure analysis, and employing and retaining its experienced team of investment professionals.
As a manager and/or sub-advisor to open-end and closed-end mutual funds registered in the United States, Ireland, and Japan, Spectrum has significant experience in addressing the needs of investors that require daily pricing and ongoing performance and credit reporting with respect to portfolios of preferred and capital securities. In addition, Spectrum has direct experience in working with a wide array of global banks, trust companies, and third-party institutions that often maintain custody of Spectrum’s clients’ preferred and capital securities.
Volatility Mitigation Strategies
Spectrum has also developed and implemented credit and volatility solutions to mitigate credit and interest rate risk through strategies known as Volatility Mitigation: Stocks an options based solution on S&P 500 index products aimed at monetizing equity volatility which can have material (indirect) implications for credit spreads; and Volatility Mitigation: Bonds, an options based solution on US Treasury bond futures aimed at monetizing UST bond market volatility during flight-to-quality events and periods of rising and falling interest rates.
“Despite the overlay of geopolitical tensions, polarized politics and pandemic fatigue, developed economies are expanding, though with less momentum than in 2021 due to monetary tightening, waning fiscal support and price inflation. Issuers of preferred and capital securities remain resilient post-COVID-19. Global banks and insurance companies continue to exhibit solid credit fundamentals and should benefit from a gradual rising rate environment. From an environmental, social and governance (ESG) perspective, there is increasing regulatory pressure to ensure that investment managers and companies are accurately disclosing their ESG efforts. This is positive for investors.”