Perspectives Blog

Time, not timing

Columbia Management, Investment Team | November 26, 2013

Historically, some of the worst short-term market fluctuations and losses were followed by periods of substantial market recovery. Investors who try to time market swings often end up missing out on the market’s best days. Asset allocation, diversification and periodic rebalancing are tools investors can use to help weather market downturns. Sometimes the best selling strategy for investors may simply be — don’t. Focus on buy and hold for the…

Interpreting the bond rally from a multi-asset perspective

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | June 2, 2014

A framework for identifying capital market states can help set expectations for markets in the aftermath of the recent bond rally. Our framework suggests a highly bullish market state for equities although that market state would shift to bearish if conditions became more neutral. While we expect ongoing strength in equities (which should pressure bond markets and drive yields higher), the durability of strong performance in risk asset markets…

A port in the storm — Short muni funds can offer refuge in the face of rising rates

Catherine Stienstra, Senior Portfolio Manager | October 2, 2014

…any investment surprises, perhaps none bigger than the downward move in yields across virtually all fixed-income markets. While we are surprised at the magnitude of the decline, it is worth noting that at the beginning of this year we encouraged investors to consider investing in long-maturity municipal bond mutual funds. While that recommendation was not in line with most market calls at the time, we emphasized the extra yields long funds offere…

From tactical to core – The case for emerging market debt

Columbia Management, Investment Team | June 2, 2014

For many investors, emerging market debt could be viewed as a core-portfolio holding rather than a short-term tactical investment. 2013’s re-pricing created value in terms of higher yields, a more dedicated investor base and a better relative value argument. Flexibility across the full spectrum of EMD investment opportunities is extremely important, as emerging markets are not homogenous. By Patrick McConnell, Director, Fixed Income Product Ma…

Sweeping money market fund reforms adopted by SEC

John McColley, Portfolio Manager, Liquidity Strategies | July 28, 2014

…goal. On July 23, the SEC voted 3-2 to adopt sweeping reforms to Rule 2a-7 which governs the operation of money market funds. These changes cap nearly six years of debate over the future of the money fund industry. Speaking on the changes, Chairperson Mary Jo White said that these new provisions will “fundamentally change the way that most money market funds operate, and provide important new tools to protect investors and the financial system i…

Yellen at Jackson Hole

Zach Pandl, Portfolio Manager and Strategist | August 25, 2014

….g. monetary economist Adam Posen). Indeed, her comments were starkly different in tone than her speech on labor markets in March, when she said that the recovery “still feels like a recession to many Americans, and it also looks that way in some economic statistics,” and “In some ways, the job market is tougher now than in any recession.” Janet Yellen at Jackson Hole was not the dove we thought we knew. Her remarks of course included the usual s…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

…d closer to the Federal Reserve’s targets. Against this macroeconomic backdrop, interest rates in most developed markets look unsustainably low. We therefore expect meaningful increases in the second half of 2014 as bond markets begin to reflect the increasingly mature recovery. Municipal bonds James Dearborn, Head of municipal bonds investments Review: Municipal bonds had a strong first half of 2014. While the drop in Treasury rates since the en…