Perspectives Blog

Has dividend investing lost its luster?

Columbia Management, Investment Team | May 12, 2014

…remains an attractive strategy. Even if rates continue a long-term increase from current levels, we expect that equities sensitivity to rising rates will decline. We believe the drivers that have resulted in historical stock market outperformance from high-yielding equities remain intact. By Paul Stocking, Senior Portfolio Manager and Dean Ramos, Senior Portfolio Manager With interest rates rising in 2013 and after a number of years of outperfo…

The end of “risk-on/risk-off”

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

…is risk-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…

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

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

…arkets had a difficult start to the year. After experiencing negative returns in January, both U.S. and European equities recovered in February and are now slightly positive for the year. The best returns have come from U.S. small-cap equities along with shares of equities domiciled in the periphery of Europe. These two broad groups are both up mid-single digits. Emerging market equities continue to lag developed market performance. And, Japanese…

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…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

…e important? We believe that better corporate governance should help unleash the value that has been in Japanese equities hidden behind inefficient balance sheets and poor shareholder policies. Two of the major objectives of changes to corporate governance incentives are 1) eliminating conflicts of interest that exist between managements and shareholders and 2) ensuring the company‚Äôs assets are used effectively in the best interests of stakeholde…

Asset allocation: Q4 equity strategy

Columbia Management Global Asset Allocation Team, | October 27, 2014

After the recent correction and with the breadth of our asset allocation research still favoring equities, we are rebuilding an equity overweight, primarily using U.S. large-cap stocks. While the Fed heads toward the exit, the European Central Bank is planning to provide further monetary easing and the Bank of Japan is continuing to expand its balance sheet. We are neutral on the eurozone, overweight Japan, neutral on overall EM equities favori…

European equities – Should investors care about periphery vs. core anymore?

Dan Ison, Portfolio Manager | January 13, 2014

…n the eurozone We expect nominal growth to be the key driver of an improving earnings picture in Europe European equities should show further good returns to investors in 2014 As we enter 2014 there are the usual questions, conversations and strategy pieces extolling the virtues of different regions and asset classes. 2013 saw a phoenix-like resurgence in interest for European equities with an interesting mix of winners and losers. The best perf…