Perspectives Blog

Engineering a better retirement portfolio

Columbia Management, Investment Team | June 4, 2013

…your portfolio is invested at any given point in time. And the intersection of bad timing and portfolio concentration in any single asset class can do irreparable damage when the drivers of that asset class turn sour. In our paper, Rethinking How We Invest, we introduced the concept of allocating portfolios according to risk rather than dollars. The key conclusions of that paper include: Allocate risk, not dollars, to asset classes that respond…

Time for a change

Columbia Management, Investment Team | July 23, 2013

…traditional investments such as floating rate loans and emerging market securities may play a bigger role because of characteristics that align with today’s changed economic landscape. For an extended analysis, read the white paper: In search of income – opportunities and risks for today’s investors. See more Market Insights from Columbia Management. *Source: 2013 Quantitative Analysis of Investor Behavior, Dalbar, Inc. Diversification and asset…

Looking for diversification in emerging markets

Columbia Management, Investment Team | July 30, 2013

…re to global factors that likely will correlate with investors’ developed market holdings. As such, they present a powerful opportunity for investors seeking portfolio diversification. For an extended analysis, read the white paper:   Emerging market investing: Looking for diversification See more Market Insights from Columbia Management. The securities listed are for illustrative purposes only, subject to change and should not be construed as a…

Navigating rising rates

Columbia Management, Investment Team | June 11, 2013

…to 37.7%. Therefore, investors should keep a diversified approach, focusing on bonds that offer enough yield (or risk premium) to compensate for potential price volatility. For the full analysis, click here to read our white paper Navigating Rising Rates. Risks include prepayments, foreign, political and economic developments and bond market fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop and…

How bad is China’s credit crisis?

Weili Jasmine Huang, Senior Portfolio Manager | February 3, 2014

…ough the pooling of proceeds from wealth management products provided by banks. China’s shadow banking system is by no means simple in structure but is not dominated by complex derivatives.” (from April 2013 San Francisco Fed paper “Shadow banking in China: Expanding Scale, Evolving Structure”) • China’s trusts sector consists of 60 or so trust companies, which are largely owned by agencies of the states. That means the government still has a tig…

Steady as she goes

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | April 7, 2014

…ore in hours worked. Gains across sectors in March were close to past norms, except manufacturing which was especially weak (down 1K overall). Weakness in manufacturing was mainly in non-durables (food, plastics, apparel, and paper). Some of the weakness may have been due to weather, but I would point to payback from the inventory swing. Gains were at or slightly above trend in professional/business services with about half from temporary jobs. S…

A primer on preferred securities

Carl Pappo, Head of Core Fixed Income | March 10, 2014

…a way to buy a high quality company and receive an enhanced yield relative to the senior unsecured debt. Currently, the yield on traditional preferred securities is 200 to 250 basis points above the yield of senior unsecured paper. • U.S. corporations can deduct 70% of income received on certain preferred securities (DRD Preferred securities). • Individuals pay a maximum statutory rate of 20% on qualified dividend income (QDI) distributions, rel…