Principal Asset Management has launched a North American corporate hybrid securities fund targeting financing demand from AI-related power infrastructure.

The PGIF Spectrum North American Corporate Hybrid Income Fund is a UCITS strategy and the first dedicated to US dollar-denominated North American corporate hybrid securities, with a focus on utilities and energy-related companies, the asset manager said.

The fund is targeting financing opportunities created by rising investment in AI-related power infrastructure, including electric grid infrastructure, data centres, the energy transition and utility network modernisation, Principal explained.

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The fund will be managed by Spectrum Asset Management, the specialist preferred and capital securities manager for Principal.

“Utilities and energy companies will need significant capital to meet rising electricity demand, expand capacity, support data centre growth, and modernise the grid,” said Mark Lieb, president and chief executive officer of Spectrum Asset Management.

“This fund gives investors with access to a segment of the market that has historically been difficult to reach through dedicated UCITS strategies.”

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The launch comes as the corporate hybrid market has historically been concentrated in Europe, while US utility capital expenditure is expected to reach around $248bn (£183.5bn) by 2029, creating significant financing needs across the sector, Principal added.

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