Perspectives Blog

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

…reform bills and removal of energy subsidies are making moves in the right direction. 2014 will be an important year on the reform front – execution of the Chinese reforms are obviously on the market’s mind, but presidential elections in India, Brazil, South Africa, Indonesia, Turkey and possibly Thailand have the potential to increase volatility, but also open a window for reforms to gain momentum if the ruling party wins with a strong mandate….

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…ct, the fragile five are among the top performing markets in the EM universe (and the world) this year in $ terms — India +7.69%, Indonesia +27.98%, Brazil +7.9%, South Africa +5.82% and Turkey +14,53%. We recently noted that election cycles can create opportunities amidst pervasive pessimism as newly elected governments normally have a window to push through much needed reform. Polls in India, Indonesia and Brazil have shown pro-reform candidate…

Gifting strategies with 529 plans

Columbia Management, Investment Team | December 3, 2013

…consequences his parents and grandparents cannot gift to Matt, in a 529 plan or otherwise, over $28,000 in any single calendar year (unless the exclusion amount increases). Also, for tax purposes his grandparents must make an election to spread their gift of $140,000 evenly over a five-year period, using IRS Form 709. Our college savings calculators can help you plan for future education expenses. Contact your financial advisor for more informati…

The new tax regime and stock compensation

Abram Claude, Vice President, Columbia Management Learning Center | October 30, 2013

…idends received before vesting are treated as wage income and taxed as ordinary income. Note: The 60-day holding period required for qualified dividends does not begin until the vesting date unless the recipient made an 83(b) election to pay taxes at the grant date (only permitted for restricted stock, not for restricted stock units). Restricted stock units (RSUs) are similar to restricted stock awards (RSA) except that the employee initially re…

Is Japan’s economic rebound for real?

Daisuke Nomoto, Senior Portfolio Manager | May 23, 2013

…her a policy to address the financial imbalances among the government sector, corporate sector and household sector, Reinforcement of popular support for the government’s mandate (The LDP’s presumed victory in the upper house election in July), Decision of government pension funds to increase equity exposure in their long-term strategic asset allocation, Setting up special economic zones for foreign companies as a part of future growth initiative…