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…

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. …

The role of asset location

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

…tax-favored investments under tax-deferred or tax-free registrations in order to increase after-tax returns. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic. The tax elements resulting from the American Taxpayer Relief Act and the taxes associated with the Affordable Care Act beg reconsideration of the adage, “It’s not what you make, it’s wha…

Maximizing workplace retirement plans to reduce or eliminate the net investment income tax

Abram Claude, Vice President, Columbia Management Learning Center | November 6, 2014

…place retirement plans, such as 401(k) plans, may offer several opportunities to reduce exposure to the tax. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic. Many higher-income investors with taxable investments encountered a new tax that began 2013: the 3.8% tax on net investment income (NII). The NIIT applies to the lesser of the amount of: (a) M…

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…

What is the Net Investment Income Tax, and how is it calculated?

Abram Claude, Vice President, Columbia Management Learning Center | November 4, 2014

…ce a 3.8% surtax. This tax is in addition to any ordinary income or long-term capital gains tax obligations. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic. The net investment income tax is a permanent tax that became effective in 2013. The tax will go into the general revenue of the U.S. Treasury, but it was legislated to support the Affordable C…