Perspectives Blog

Defense industry outlook – Looking past the headlines

Ben Blomberg, Senior Equity Analyst | March 17, 2014

The outlook for U.S. defense contractors has been improving despite all the negative headlines. Army spending is under pressure, but Navy and Air Force spending remain well supported. The recent Ryan-Murray deal is a substantial positive, with a more predictable DoD outlook. Defense investors have had their share of bad news around the trajectory of defense spending, starting with the Budget Control Act of 2011, followed by the failure of the…

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

changing environment. In what many expect to be a gradually rising interest rate environment, active managers have the ability to determine which bonds are most appropriate to purchase or avoid, based on their macro-economic outlook, the security’s relative value and the fund’s positioning relative to the index. We feel strongly that active municipal bond management, with its ongoing investment oversight, credit research, trading and risk manage…

The role of asset location

Abram Claude, Vice President, Columbia Management Learning Center | October 23, 2013

Financial advisors and investors should have a good understanding of what is different about taxation in 2013 and beyond – and how it affects after-tax returns. An asset location strategy should consider the benefits of placing less 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 time…

New taxes require strategies to maximize after-tax return

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

Higher earners with taxable investments are most susceptible to triggering the net investment income tax, a surtax of 3.8% that applies to taxable investments. An asset location strategy involves placing a greater percentage of the most tax-sensitive investments in tax-deferred accounts. Retirement plans offer significant opportunities for participants and business owners to reduce taxable income. In 2013, new taxes associated with the Afforda…

Monetary policy shift creates new investment challenges

Columbia Management, Investment Team | August 6, 2013

for positive expected returns remain for the balance of 2013. In fact, the repricing of many assets as the second quarter drew to a close has created an expanded set of attractive assets. Importantly, our economic performance outlook for the United States does not support accelerated withdrawal of monetary policy support, so recent volatility might well be a short-term overreaction. In terms of overall asset allocation, we recommend a neutral wei…

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

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

…growth could be attributed partly to weather and partly to the payback from the strength in inventory stocking witnessed throughout most of last year. Signals from our equity scorecard model also point to a moderately bullish outlook for equities. Equity momentum remains in a favorable state and macro factors on balance support this trend. In our country scorecard, U.S. rankings improved significantly. Earnings growth has improved and technical c…