Spectrum Asset Management to Manage Preferred Securities Component for Additional Nuveen Fund; Common Share IPO Raises More Than $2 Billion
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DES MOINES, Iowa--(BUSINESS WIRE)--June 26, 2003--Spectrum Asset
Management, an affiliate of Principal Global Investors, today
announced it will manage the preferred securities component for a new
closed-end, exchange-traded fund offered by Nuveen Investments. The
Nuveen Preferred and Convertible Income Fund 2 raised approximately
$2.2 billion in the initial common share public offering and began
trading on the New York Stock Exchange June 26 under the ticker JQC.
The fund emphasizes a blend of taxable preferred, convertible
securities and other debt instruments. Spectrum, with its deep
expertise in the preferred securities arena, will manage the fund's
allocation to preferred securities. The fund will seek high current
income, with an additional objective of total return.
"As the interest in this fund shows, preferred securities are
attractive to investors based on their potential for increased
yields," said Mark Lieb, Spectrum's founder and executive director.
"Additionally, investors may also be able to achieve greater overall
diversification in their portfolios based on the low return
correlations investment grade preferred securities have with a number
of asset classes."
Spectrum Asset Management is one of the leading U.S. managers of
investment-grade preferred securities portfolios, with $9 billion in
assets under management. Spectrum is based in Stamford, Conn.
Nuveen Investments provides high-quality investment services that
contribute to the building of well-diversified, core investment
portfolios. The Company serves financial advisors and their
high-net-worth clients, as well as a growing number of institutional
clients. Nuveen Investments today markets its asset management
capabilities--which include tax-free investing, separately-managed
accounts and market-neutral alternative investment portfolios--under
four distinct brands: Nuveen, NWQ, Rittenhouse and Symphony. In total,
the Company now manages more than $81 billion in assets. An affiliate
of The St. Paul Companies (NYSE:SPC), Nuveen Investments is listed on
The New York Stock Exchange and trades under the symbol "JNC."
Principal Global Investors is a diversified asset management
organization and a member of the Principal Financial Group(R), with
expertise in equities, fixed income and real estate investments, as
well as specialized overlay and advisory services. Principal Global
Investors manages over $100 billion in assets for retirement plans and
other institutional clients.

About the Principal Financial Group:

The Principal Financial Group(R) (The Principal(R))(1) is a leader
in offering businesses, individuals and institutional clients a wide
range of financial products and services, including retirement and
investment services, life and health insurance and mortgage banking
through its diverse family of financial services companies. More
employers choose the Principal Financial Group for their 401(k) plans
than any other bank, mutual fund, or insurance company in the United
States(2). A member of the Fortune 500, the Principal Financial Group
has $116.3 billion in assets under management(3) and serves some 13
million customers worldwide from offices in Asia, Australia, Europe,
Latin America and the United States. Principal Financial Group, Inc.
is traded on the New York Stock Exchange under the ticker symbol PFG.
For more information, visit www.principal.com.

(1) "The Principal Financial Group" and "The Principal" are
registered service marks of Principal Financial Services, Inc., a
member of the Principal Financial Group.

(2) CFO Magazine, April/May 2002, based on total plans served in
2001 by insurance companies, banks and investment firms.

(3) As of March 31, 2003.