Perspectives Blog

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

…growth target, but barring unforeseen developments, it should not be significantly down in the next 3-5 years (such as below 6.0%). There are also encouraging developments elsewhere in Asia Pacific ex Japan. In India, Modi’s election victory on the back of his 14-year scorecard in Gujarat speaks of electorate demands for politicians to deliver sustained growth(3). Indonesia’s opinion polls are predicting a victory for Joko Widodo in the July pre…

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….

India’s new government fires investor enthusiasm

Natasha Ebtehadj, Fund Manager, Threadneedle International Limited | September 8, 2014

…he IMF, stabilized the rupee and the current account by stemming capital outflows and reassuring the market with an explicit inflation targeting policy. But while these developments were important, the outcome of the May 2014 election proved the real game changer in restoring investor confidence. After 550 million votes were counted, the BJP emerged with an overall majority and Prime Minister Narendra Modi now heads the first government in 25 yea…

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…

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…

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…