No changes from last month. Source: Columbia Management Investment Advisers, LLC. The chart reflects the views of the Global Asset Allocation Team as of July 24, 2014. Asset classes are ranked from 1 (overweight) to 5 (underweight), with 3 representing a neutral allocation.
IMCA Jeff Knight Interview The Investment Management Consultants Association (IMCA) interviewed Jeff Knight recently and he spoke about the three pillars of a resilient portfolio for today’s environment. Many investors are looking to preserve post-crisis gains and bolster the defensive dimension of their portfolios to better withstand volatility. In this video, Jeff Knight, Global Head
A 60/40 portfolio may appear to be balanced, but when viewed through a risk lens it is clear that the equity allocation comprises a disproportionate amount of the risk. As a static strategy, the very thing that has helped risk parity succeed over time may prove to be its biggest liability going forward, and that
Because yield is an important driver of returns, we believe investors may be better served staying invested rather than sitting in cash or taking a decisively negative position on bonds. History has shown that volatility can stay low for extended periods. In that case, we would expect credit sensitive assets to continue to generate reasonable
In contrast to last year, so far this year all major asset classes have performed well. Developed market equities, bonds, emerging market (EM) equities and EM bonds, and commodities are all up year to date in the range of 4%-8%. Globally diversified portfolios should continue to fare well in this environment and the global asset
Key investment professionals review the first half of 2014 and share their insights into what may be ahead for the second half of the year. Interest rates Zach Pandl, Portfolio manager and strategist Review: Government bond yields declined in early 2014, both in the U.S. and in other developed market economies. This surprising change in
The global asset allocation team reaffirmed their recommendation to modestly overweight equities versus bonds, despite the slight underperformance of equities relative to bonds so far this year. The S&P 500 is up about 3.5% while the Barclay’s aggregate index is up 4.0% and longer dated bonds are up over 13%. This strong bond market performance