Perspectives Blog

2015 Outlook — Same song, slightly different arrangement

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

…the best chance of any meaningful investment gains. Just like last year and the year before. What’s different in 2015? As stationary as market conditions have felt lately, circumstances are always evolving. For 2015, while the essential elements of our outlook remain in place, we highlight two important changes in the market environment: The relative value of global equities vs. global bonds actually improved during 2014. Monetary policy around…

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…

Emerging market equities — Still a world of opportunity

Georgina Hellyer, Fund Manager | December 1, 2014

…nt enough to withstand the economic turmoil in which the developed world found itself embroiled. Fast forward to 2014 and the reality has proved disappointing. Over the past five years as of September 30, the MSCI Emerging Markets Index has delivered a total return of 24% while U.S. stocks have more than doubled in value. Meanwhile, UK equities have risen by nearly 60% and even equities in troubled continental Europe have increased by 36%. Yet ma…

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’s assets are used effectively in the best interests of stakeholde…