Perspectives Blog

New taxes require strategies to maximize after-tax return

Abram Claude, Vice President, Columbia Management Learning Center | March 18, 2014

ount of net investment income to the 3.8% surtax by pushing more or all of NII above the threshold. This surtax is in addition to any other tax obligation incurred, whether it is derived by the standard tax calculation or the alternative minimum tax (AMT) calculation. Managing the 3.8% surtax on taxable investments How does asset location address net investment income tax? Investments in tax-deferred accounts are not subject to any taxation whi…

Monetary policy shift creates new investment challenges

Columbia Management, Investment Team | August 6, 2013

…so recent volatility might well be a short-term overreaction. In terms of overall asset allocation, we recommend a neutral weighting to equities, an underweight exposure to fixed income, and an overweight exposure to certain alternative investments, particularly absolute return strategies. Within equities, we remain positive on the outlook for U.S. stocks. With the overall economy on more solid footing, and with the corporate sector in very good…

Second quarter asset allocation positioning

Columbia Management, Investment Team | May 14, 2013

…rsified portfolios. The Columbia Management Asset Allocation Team meets to review global economic investment conditions and markets. Team members discuss and evaluate the relative attractiveness of equities, fixed-income and alternative investments within various sectors, investment styles, markets and countries. The consensus opinion of the team is published quarterly in the Investment Strategy Outlook. Below is a summary of the team’s current…

Compelling opportunity in municipal bonds

Catherine Stienstra, Senior Portfolio Manager | November 7, 2013

…xes may be applicable and can further reduce the after-tax returns of some municipal bond investments (depending on the state of residence). Income from certain tax-exempt securities may be subject to the federal and/or state alternative minimum tax for some investors. In addition, federal and state income tax rules will apply to any capital gain distributions and capital gains or losses on sales. When investing in municipal securities, investors…

Opportunity in lower-quality municipals

Columbia Management, Investment Team | August 15, 2013

…xes may be applicable and can further reduce the after-tax returns of some municipal bond investments (depending on the state of residence). Income from certain tax-exempt securities may be subject to the federal and/or state alternative minimum tax for some investors. In addition, federal and state income tax rules will apply to any capital gain distributions and capital gains or losses on sales. When investing in municipal securities, investors…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

Infrastructure investments may offer stable cash flows and diversification from more cyclical investments Infrastructure investments span the emerging and developed markets across many industries Today’s current market environment offers unprecedented opportunities for well-resourced investors Infrastructure represents the foundation for our day-to-day lives—the societal staples we rely on. And the stable fundamental demand drivers of infrastr…