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. 

The financial industry is well positioned for a maturing credit cycle, slowing world economies and trade tensions as well as political challenges in Europe, particularly due to Brexit uncertainty and leadership instability in Italy. Fundamentally sound bank and insurance companies in developed nations like the US should continue to manage through global volatility.
— Joe Urciuoli, Head of Research, August 16, 2019