Perspectives Blog

Surveying the landscape for M&A

Robert McConnaughey, Director of Global Research | March 3, 2014

…it 3). Over the longer term, the results for acquirers have generally been poor, with average underperformance over one, two and three year periods. A recent academic paper on the subject by Mehmet Akbulut of California State University* has drawn a lot of attention, particularly in the wake of some recent all stock deals in the technology sector. He goes one step further, by examining the returns of acquirers who use “over-valued” stock as curre…

Labor markets in the new digital age

Columbia Management, Investment Team | April 14, 2014

…ent in innovation—killing some jobs but also creating new ones in the process. But the effects of the new machine age have put downward pressure on wages at the bottom and now middle-income workforce. A recent study by Oxford University economists Frey and Osborne* suggests 47% of U.S. jobs could be automated in the next 20 years, with less impact on those with a higher education and in certain industries that are less vulnerable (Exhibit 1). It…

Could a 529 plan help you pay less for college?

Columbia Management, Investment Team | May 22, 2014

…ng on loans or taking from your cash flow in the future to make tuition payments. Which would you rather pay? In this hypothetical example, a family with a two-year-old child has a goal of saving enough for a four-year public university – $214,700 (currently $22,800 a year):1 Visit the 529 Savings vs. Loans Calculator to run your own personalized estimate.  To learn more, visit columbiafs529.com.   Please consider the investment objectives…

Gifting strategies with 529 plans

Columbia Management, Investment Team | December 3, 2013

…lendar year after the contribution or a prorated amount will be included in their estate. Let’s look at some examples. Gifting 101 Meet the Johnston family. They have one son, Matt, who they hope will attend a highly regarded university one day. They have made modest contributions to a 529 plan for their son in prior years but know they need to do more to meet their full savings goal and ensure that Matt has enough resources to choose any school…

How will you pay for your child’s future education?

Columbia Management, Investment Team | August 27, 2013

…ially save. How much will saving in a 529 plan help? The Sullivans have a one-year-old daughter, Jane, who they want to send to college one day. Based on today’s total cost of college of $22,261 per year for an average public university, their four-year total when Jane attends college in 17 years will be $219,913.* Paying with a 529: Assuming an annual investment return of 6% if they open a 529 plan, paying the entire $219,913 will require monthl…

High-cost colleges beware

Beth Ware, Senior Municipal Bond Analyst | August 20, 2013

High-cost colleges beware: newly cost-sensitive students may pressure your business model. Municipal bond investors should be aware that certain categories of universities are likely at greater risk of credit rating downgrades. We remain concerned with universities that do not have a strong balance sheet, revenue flexibility and/or reputation to compete long-term in an industry where revenue growth is projected to be stagnant. The cost of high…