Perspectives Blog

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

…ovided a backdrop to the strong performance of U.S. equities. The lessons hold relevance for equity investors in Asia as big picture conditions for a Great Moderation are starting to fall into place. We believe the “new moderation” mindset will take Asia into its next leg of development, unleashing its potential in a more sustainable and stable manner. Lessons from the Great Moderation One of the great phenomena in the past three decades has bee…

Harvesting a New Moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 23, 2014

…once adaptive change gets underway. The ability to control cost is essential to surviving the growth slowdown in Asia Pacific ex Japan. We do not just need companies to be adapted; we also need them to be positioned for adapting. A New Moderation in Asia In my previous article, I argued that conditions are in place for the slowdown in Asia to evolve into a sustained period of moderate but stable growth. In this article, we shall explore the impl…

Investing selectively in Asia

Soo Nam Ng, Head of Asian Equities | July 14, 2014

…vious two articles, I argued that big picture conditions for more sustainable growth are beginning to surface in Asia (article1, article2). Furthermore, Asia’s corporate sector has been adapting to the moderated growth environment by streamlining cost and capital expenditure. The final question we shall address is how investors should respond going forward. Growth opportunities The field is ripe for growth opportunities as adaptive changes run th…

Global Asset Allocation Outlook (as of May 13, 2014)

Columbia Management Global Asset Allocation Team, | June 2, 2014

…deteriorating monetary conditions. We remain neutral overall emerging market equities but have upgraded emerging Asia. Although there hasn’t been sufficient fundamental improvement in most emerging economies, several central banks, particularly in Asia, have taken steps to strengthen their currencies and improve external funding. Moreover, valuations are generally compelling. In addition, the team upgraded commodities from an underweight to neutr…

Global asset allocation outlook (September 2014)

Columbia Management Global Asset Allocation Team, | October 6, 2014

Recent market performance, particularly in September, has been negative across a widespread array of asset classes as we have seen the U.S. dollar exchange rate rise with increasing intensity in recent months. The worst returns, not coincidentally, were delivered by the very assets that have shown historically high sensitivity to dollar strength. This disruption to currency stability in general, and the particular importance of a rise in exchang…

Ukraine Crisis – Can the U.S. make Europe less dependent on Russian gas?

Jonathan Mogil, Portfolio Manager and Senior Analyst | July 28, 2014

…on renewables, coal or LNG imports. Europe has enough spare capacity at its LNG terminals to source supply from Asia which could mitigate the issue temporarily, but this would not be an ideal long-term solution as they would be forced to compete with Japan and other Asian buyers who have traditionally been willing to pay higher prices linked to the price of oil. Can the U.S. mitigate a gas shortage in Europe? Since the conflict began earlier thi…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

Overhauling corporate governance to harness the power of private enterprise is critical to Japan’s growth strategy. Better engagement between corporate management and shareholders should ultimately lead to higher returns for holders of Japanese equities. We are focused on companies that can generate sustainable free cash flow, earn returns well above their cost of capital and