Perspectives Blog

Does a perfect policy portfolio exist?

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | May 5, 2014

…set class weightings for an investment portfolio, has evolved significantly during the course of my career as an asset allocation specialist. From the humble beginnings of standard balanced investing (the good old 60/40), investors have searched for the best neutral asset allocation to serve their goals over the long term. Over the last 20 years, we have seen these portfolios broaden as new asset classes are defined (like emerging market equity),…

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

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

The global asset allocation team reaffirmed their recommendation to modestly overweight equities versus bonds, despite the slight underperformance of equities relative to bonds so far this year. The S&P 500 is up about 3.5% while the Barclay’s aggregate index is up 4.0% and longer dated bonds are up over 13%. This strong bond market performance is contrary to consensus expectations which had forecast yields to rise above 3.5% this year. With…

Global Asset Allocation Outlook (June 2014)

Columbia Management Global Asset Allocation Team, | June 30, 2014

In contrast to last year, so far this year all major asset classes have performed well. Developed market equities, bonds, emerging market (EM) equities and EM bonds, and commodities are all up year to date in the range of 4%-8%. Globally diversified portfolios should continue to fare well in this environment and the global asset allocation team continues to recommend modestly overweighting equities over bonds with a neutral allocation to commodi…

January asset allocation update

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | February 3, 2014

As we assess the global markets in early 2014, our overall portfolio strategy remains modestly overweight equities and underweight fixed income. While we have been anticipating an increase in volatility, we still believe equities will outperform bonds over the course of the year. The current low level of interest rates suggests returns from bonds remain unattractive on a longer term strategic basis. Real returns are likely to be low to potential…

Global Asset Allocation Outlook (as of February 24, 2014)

Columbia Management Global Asset Allocation Team, | March 10, 2014

…emerging market and developed market currencies. Despite a slight slowdown in recent economic growth, our Global Asset Allocation proprietary investment clock for the U.S. signals continued economic expansion. The investment clock allows us to better understand the behavior of the business cycle and the resulting impact on asset class performance. We believe growth continues to be on a solid footing, somewhere between 2% and 3%. The recent slowdo…

The importance of taking a long-term perspective

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | February 3, 2014

…er the past several weeks. Chart 1 shows our forecasted five year total average annual returns for several major asset classes (2014-2018, compiled as of December 31, 2013). Disclosure: The chart represents return forecasts for several asset classes. These forecasts are forward-looking based upon the reasonable beliefs of the Columbia Management Global Asset Allocation team and are not a guarantee of future performance. Actual results may differ…

Global asset allocation outlook (August 2014)

Columbia Management Global Asset Allocation Team, | September 8, 2014

We have advocated an overweight to equities for several years. Even through the early year setbacks for the global economy and for global stocks, our views favored equities over other investment choices. To the degree that our overall investment stance has been overweight equities, we have willfully assumed a higher risk profile than usual. So far in 2014, equities have not disappointed, with the U.S. market in particular rising nearly 9% throug…