Perspectives Blog

Q2 fixed income outlook – Hitting for the cycle

Gene Tannuzzo, CFA, Senior Portfolio Manager | March 31, 2014

…reates opportunities for bond investors in the non-agency mortgage market, as well as in certain corporate industries. Internationally, growth has generally lagged the U.S. However, we are now starting to see better growth in Europe and Japan which we expect to broaden to emerging markets as well. Following weakness last year, emerging market debt has posted gains this year, and we expect further strength ahead as volatility subsides. The monetar…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

…e correlation between the level of corporate governance and ROE in Japanese companies. The average ROE of Japanese companies is relatively low from a global perspective (Exhibit 1). Exhibit 1: ROE: Japan vs. United States and Europe Source: Columbia Management Investment Advisers, LLC In order to fix this problem, Japan’s Financial Services Agency proposed a Stewardship Code earlier this year. This code is based on a similar concept introduced i…

Global asset allocation outlook (as of March 2014)

Columbia Management Global Asset Allocation Team, | April 7, 2014

After significant gains in 2013, equities took a breather in the first quarter of 2014 while fixed income assets rallied. The S&P 500 Index experienced a fair amount of volatility, retreating 5.8% at the start of the year and then rallying by more than 7% to end the quarter modestly higher. Within international markets, European, emerging markets (EM) and Japanese equities lagged U.S. equities. By the end of the quarter, however, risk assets…

It’s a mobile world

Dave Egan, Senior Equity Analyst | March 10, 2014

…rade from its 3G network to its LTE network, and its competitor China Telecom looks set to do the same starting in the second half of 2014. In addition, 3G Investments in India appear strong and LTE investments by carriers in Europe also appear likely. While the improved outlook we are hearing about could turn out to be just another head fake, the demand appears real and at minimum should at least meet investor expectations, if not beat those exp…

The importance of taking a long-term perspective

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

…0 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. The MSCI EAFE Index is a capitalization-weighted index that tracks the total return of common stocks in 21 developed-market countries within Europe, Australia and the Far East. The MSCI EM Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell 2000 Index measures…

Scarce growth – Can the tortoises continue to outpace the hares?

Robert McConnaughey, Director of Global Research | May 19, 2014

…ern regarding global growth of late with 1Q U.S. gross domestic product (GDP) extremely anemic, a continued slowdown in Chinese growth and generally uninspiring revenue reports from 1Q earnings in the U.S. and even more so in Europe. However, we continue to see a slow, steady improvement in U.S. growth (evidenced more clearly by the employment data) and a continuation of enough growth in the rest of the developed world to maintain forward progres…

Three investments that could return to favor in 2014

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 16, 2013

…ding Japanese equities. Corporate earnings strength could seal the deal, and our bottom up expectations for Japanese corporate earnings growth next year is higher than the levels that we expect in the United States, the UK or Europe. For these reasons, we begin 2014 with an overweight position in Japanese stocks. Source: IBES Global Estimates, Datastream, November 2013. Emerging market stocks are also tempting. These stocks have essentially sat…