Perspectives Blog

The case for active bond management

Carl Pappo, Head of Core Fixed Income | August 25, 2014

…ty to proactively adjust the risk profile of the portfolio, regardless of technical and fundamental signals. The Columbia Core Team utilizes an active management approach seeking to deliver strong risk adjusted returns, relative to our clients’ benchmarks. The team places heavy emphasis on bottom up security/company analysis to evaluate credit risk and valuation, actively managing portfolio sector weights and company exposures to deliver excess r…

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

…ave no defensive measures to protect returns when the market declines. However, it is our conviction that active management, with the support of a deep investment management bench, can provide investors with a better risk/reward opportunity, especially in today’s unpredictable investment environment. Actively managed portfolios provide investors with the opportunity to outperform their benchmarks by relying on the investment expertise of a team o…

2015 Outlook — Same song, slightly different arrangement

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 15, 2014

…sets as 2015 begins. The graph plots the expected return vs. risk for selected assets around the world, based on Columbia Management proprietary estimates. For each asset, the expected return (proxied by yield-to-maturity for bonds and by implied cost of equity capital for stocks) is plotted against the product of volatility and correlation to world equities. By incorporating correlation, we give credit to assets that offer a diversification bene…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | November 3, 2014

…ective in 2013. These taxes will impact many high income individuals, as well as certain estates and trusts. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic. In 2013, there were new tax rates and provisions that became effective as a result of the American Taxpayer Relief Act of 2012 and taxes associated with the Affordable Care Act (ACA) of 2010. …

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

…ness 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 regularly conduct shareholder friendly capital management. A critical aspect of Japan’s growth strategy is ov…

A port in the storm — Short muni funds can offer refuge in the face of rising rates

Catherine Stienstra, Senior Portfolio Manager | October 2, 2014

…ing forced to sell bonds in a potentially stressed market to generate cash to reinvest at higher rates. Source: Columbia Management Advisers, LLC 2. Investing in shorter maturity securities protects from rising rates. As short muni funds typically have an average maturity of three years or less, they are generally less sensitive to changes in interest rates than are longer maturity funds. Looking back 20 years and across various interest rate cy…