Perspectives Blog

Asset allocation: The conundrum of 2014

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | March 3, 2014

When economic growth levels off, the headwinds for bonds subside, which fits the patterns of 2014 so far. With bond yields at current levels, the attractiveness of interest rate risk from a valuation standpoint is meager. Should the economic data reaccelerate, we would expect equities to perform well and rate sensitive bonds to struggle. In 2013, both the S&P 500 Index and the yield on 10-year Treasury bonds finished the year at their high…

Three tools for a resilient portfolio

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | January 15, 2014

Portfolio resilience refers to the ability of a portfolio to withstand unanticipated adversity and to respond from that adversity. Effective diversification requires thinking not only about allocating the assets in a portfolio but about allocating the risks. A flexible strategy enables a portfolio to adapt to changes in the relative attractiveness of different risks. Watch: Jeff Knight describes three strategies his team employs in seeking to…

Special report – Commodity markets outlook

Columbia Management, Investment Team | July 21, 2014

In the following Q&A, David Donora, Head of Commodities for Threadneedle Investments, addresses some of the key concerns currently facing investors in commodity markets, and explains his view of the outlook for the market. What is your outlook for commodities for the remainder of 2014? We are bullish on the macro outlook for the rest of 2014. The OECD countries and in particular North America, the region where economic growth is currently th…

Interview with Jeff Knight – The three pillars of a resilient portfolio

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | July 21, 2014

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 of Investment Solutions and Asset Allocation, supports…

Sweeping money market fund reforms adopted by SEC

John McColley, Portfolio Manager, Liquidity Strategies | July 28, 2014

In a split vote, the SEC adopted sweeping reforms to Rule 2a-7 which governs the operation of money market funds. Many funds that were previously considered retail due to their lower investment minimums will now be called institutional and fall under the new regulations. No immediate changes need to occur and we will proceed with careful anticipation and as always capital preservation remains our number one goal. On July 23, the SEC voted 3-2…

Ukraine Crisis – Can the U.S. make Europe less dependent on Russian gas?

Jonathan Mogil, Portfolio Manager and Senior Analyst | July 28, 2014

As Europe looks to diversify away from its dependence on Russian gas, the U.S. is on track to start exporting liquefied natural gas by as early as next year. Russia remains the largest exporter of natural gas in the world and accounts for approximately 30% of Europe‚Äôs gas demand, half of which is transported through Ukraine. While the risk of winter supply disruptions will likely further push Europe to seek a more diversified and permanent sour…

Building better portfolios in a low return world

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | November 17, 2014

The near-zero interest rate environment has been a support for the financial markets, but as the economy normalizes so will interest rates. While we expect the bull market in equities to continue, returns will likely be far more modest over the next 10 years. For bonds we can expect returns in the range of 2%-3% going forward. For investors looking for higher returns, solutions require a non-traditional approach to portfolio construction and mu…