Perspectives Blog

Looking for diversification in emerging markets

Columbia Management, Investment Team | July 30, 2013

Emerging markets have become a significant component of the global economy, with higher GDP growth rates compared to developed markets. The wide range of local conditions and growth drivers present in emerging markets makes them particularly interesting as a diversifier for investors already exposed to developed markets. We believe that, for diversification, investors should consider

Time for a change

Columbia Management, Investment Team | July 23, 2013

The end of a long bull market for bonds means investors need to redefine how they generate income. In an environment of heightened risk, professional expertise can help investors avoid emotion-driven mistakes. Investors should consider including non-traditional investments in a broadly diversified portfolio. The end of the bull market for bonds means the way that

Opportunities in the middle ground

Columbia Management, Investment Team | July 2, 2013

Investors seeking growth opportunities for an equity portfolio should not overlook mid-cap stocks. Mid-size companies typically feature a combination of desirable attributes – more stable than start-ups yet more flexible than large companies. Investors holding mid-cap stocks over long periods have benefited from strong performance with less volatility compared to small-cap stocks. Finding the middle

Stormy conditions in Puerto Rico

Columbia Management, Investment Team | June 25, 2013

Puerto Rico’s weakening fiscal and economic condition presents serious concerns for municipal bond investors. Investors are attracted by the portfolio diversification and triple-tax-free benefits of certain Puerto Rico debt obligations, but the credit challenges are significant. We believe that rigorous research is essential to identify those opportunities that feature investment-grade characteristics. In December 2012, we

Navigating rising rates

Columbia Management, Investment Team | June 11, 2013

Interest rates will rise at some point; investors must consider how to manage interest rate exposure in their portfolios. Duration can be a highly misleading measure of interest rate risk when making comparisons across products. For fixed income investors, sector exposure matters, and fundamental research can help avoid potholes. By Zach Pandl, Senior Interest Rate Strategist, and