Spectrum seeks to provide superior investment returns to investors in preferred and capital securities by:

  • Employing a long-term, actively managed and diversified portfolio approach;

  • Emphasizing fundamental, qualitative and quantitative credit analyses to company and credit selection and relative value analysis to the individual security and sector selection; and

  • Taking advantage of the inefficiencies found in the various primary sectors of preferred and capital securities (i.e. between $25 par retail paper and $1,000 par institutional paper) and junior subordinated debt securities (i.e. contingent capital securities).

Spectrum’s global perspective, deep knowledge and extensive experience uniquely position the firm to assist investors seeking the income, total return and diversification potential offered by a professionally managed portfolio of preferred securities.

Spectrum believes that the preferred and capital securities of a high-quality issuer may offer a better risk adjusted return versus the senior debt of a similar quality and/or lower quality issuer due to relative credit risk premium and recovery characteristics experienced in the asset class. In addition, a preponderance of retail investors in the preferred and capital securities market may create inefficiencies or opportunities for a professional investment manager to generate alpha. 

Investment Process

Spectrum's investment process reflects a core commitment to fundamental research and an understanding of structural risks.  An integrated global process networked with our parent can also complement our boutique style through a team-orientation with Principal Global Investors.  A significant amount of our time and resources are focused on analyzing the information necessary for our bottom-up investment process. Specific portfolio risk is managed through credit and security selection and may be complemented systemically by risk management solutions aimed to mitigate market risk.

Our methods emphasize traditional financial and technical analysis within the context of broad industry and economic trends, among other considerations.

A Fundamental, Bottom-up, Research Driven Credit Process

Spectrum's experienced credit team uses a mosaic approach to examine, review and monitor every issuer of preferred securities and focuses on fundamental, qualitative and quantitative credit analysis to identify and select stable-to-improving credits and avoid speculative names.

Complemented by a Relative-Value, Top-Down, Security Selection Process

Once a decision is made to include a particular issuer, Spectrum's portfolio managers, utilizing proprietary data and information systems, utilize a top-down approach in selecting individual securities based upon their structure, market sector and relative value considerations.


Spectrum is an SEC Registered Investment Advisor, and Spectrum’s affiliated and wholly-owned broker-dealer, SAMI Brokerage LLC, is registered with the Financial Industry Regulatory Authority (“FINRA”) and subject to FINRA (www.finra.org) examination and supervision. SAMI Brokerage LLC generally executes all transaction on behalf of its clients. As such, Spectrum provides its investment advisory clients with certain advantages, including Spectrum's expertise in trading preferred securities, client anonymity, and direct access to the floor of the Exchange, among others. These advantages offer Spectrum's clients the potential for favorable executions on securities transactions and other economic benefits.

Inefficiencies which typically occur between the various primary sectors of preferred and capital securities (i.e. between $25 par retail paper and $1,000 par institutional paper) and junior subordinated debt securities (i.e. contingent capital securities) can create sector allocation opportunities and structural inefficiencies. As a result, Spectrum seeks to capture incremental total return by trading such inefficiencies.

Solid bank and insurance credit fundamentals, accompanied by lower systemic risk, support the high quality and attractive income characteristics of junior subordinated capital securities.
— Joe Urciuoli, Head of Research, December 20, 2018