Perspectives Blog

The case for active bond management

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

increased when necessary to limit overall risk exposure. Passive managers, on the other hand, lack the flexibility 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 evaluat…

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

s on sales. The Barclays Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market. Indices are not managed and do not incur fees or expenses. It is not possible to invest in an index. Columbia Management and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.    …

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

tween the level of corporate governance and ROE in Japanese companies. The average ROE of Japanese companies is relatively low from a global perspective (Exhibit 1). Exhibit 1: ROE: Japan vs. United States and Europe Source: Columbia Management Investment Advisers, LLC In order to fix this problem, Japan’s Financial Services Agency proposed a Stewardship Code earlier this year. This code is based on a similar concept introduced in the UK in 2010…

Understanding the power of alpha

Matt Scales, CFA, Head of Product Development and Strategy | January 27, 2014

…the Russell 1000 Index (yellow line), the same benchmark used by the active manager. The shaded red area ranges from October 2007 through February 2009, or the peak-to-trough in equities during the Financial Crisis. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee future results. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee futur…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | September 11, 2013

Recent legislation has added new provisions to the Internal Revenue Code that will impose new tax rates beginning 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, which will appear here over the next seven weeks. In 2013, there are new tax rates…

The end of “risk-on/risk-off”

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | February 3, 2014

…k-on/risk-off regime posed a problem for multi-asset portfolios as many of the traditional diversifiers of equities increasingly behaved much more like equities, making it harder to achieve portfolio diversification. Source: Columbia Management Investment Advisers, LLC, December 2013 Correlations between equities, credit, foreign exchange, interest rates and commodities have steadily increased over the past two decades. As you can see from the c…