In our white papers, Columbia Management senior investment professionals put some perspective around current financial and economic issues and how they may impact investment opportunities.
Tri-State Pensions: New York, Connecticut, New Jersey — reforms resulting in improvements
- Tri-state region is dependent upon New York City
- Strength of state pension systems varies
- Improvements being implemented
Reducing risk — Absolute return and the pursuit of better diversification
Did you know that, for greater diversification, adding one asset can mean more than a thousand? In this new article readers will learn that correlation really matters, but, in today’s highly correlated investment landscape, finding the uncorrelated assets essential to effective diversification is a major challenge. By proactively managing for both risk and reward, absolute return funds are establishing their place alongside traditional allocations.
Municipal Pension Obligations: Why fear about underfunding may be unjustified and why Chapter 9 will never become pervasive (save a few outliers)
We expect that public pension funding levels will continue to be a politically contentious issue. Pension reform will vary for each state and municipality but on a whole, will opt for reform measures rather than turn to Chapter 9 Bankruptcy for relief.
Three investments that could return to favor in 2014
We are keeping an eye on three opportunities in 2014:
- Japanese stocks
- Emerging markets
- Active stock selection strategies
Janet Yellen's Fed
As long as inflation remains low, Janet Yellen will likely advocate a slow exit from the Fed's easy policy stance.
Europe — A new dawn or a false dawn?
Mark Burgess, CIO Threadneedle Investments and Zach Pandl, Columbia Management Portfolio Manager and Strategist, question whether this is the beginning of a recovery for Europe or will it stall out?
Money Market positioning around the Federal budget and debt ceiling debates
With the recent government shutdown and ensuing debt ceiling breach, Columbia Management gives an update on the potential impact on money market funds.
Agency rating volatility: Municipal recalibration and beyond
It is important not to overpay for an investment due to a misguided understanding of true credit risk. Investors relying exclusively on public ratings that are increasingly volatile may want to take a closer look at what yield compensation they are getting for actual credit risk.
Emerging market investing: Looking for diversification
Emerging markets have become a driver of the global economy, but simply investing in emerging markets may not diversify your Investments. For diversification, consider small-mid cap emerging markets.
In search of income — Opportunities and risks for today's investors
30 years of declining interest rates have rewarded bond investors with a lasting price tailwind. Add to this the post-crisis appeal of fixed income's relative safety, and the result is today's portfolios are heavily concentrated in core bonds. But with yields at historic lows and near-inevitable interest rate increases on the horizon, this will no longer meet investor needs. In Search of Income -- Opportunities and Risks for Today's Investors describes this phenomenon in plain terms and presents a diverse set of solutions for successful portfolios in a rising rates world.
Inverse floaters: Attractive yield but beware of the risks
Many tax-exempt bond mutual funds invest in inverse floaters, a component of what is commonly referred to as a tender option bond (TOB) program. The inverse floater strategy can be a good one, but it can also introduce interest rate risks. We look at both side and share our stance.
Navigating rising rates
It is time for investors to start thinking seriously about interest rate risk in their portfolios. Interest rates are going to rise at some point most likely at a gradual pace. We want to help position your bond portfolio for that eventual increase.
Engineering a better retirement portfolio
Financial crisis losses and increased demand on retirement portfolios mean people's most important financial goal is also the most challenging to attain. We must look beyond simple-yet-difficult-to-implement fixes like “just save more” or “spend less” to smart fixes that force us to rethink how we invest. This paper takes an unvarnished look at the hard numbers that describe both the retirement experience and investment performance to arrive at data-driven insights for building a better portfolio. Critically, both the multitude of risks retirement investors face and volatility are examined in detail.
The views expressed are as of the date given, may change as market or other conditions change, and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, will not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon, and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate.
Diversification does not assure a profit or protect against loss.
Columbia Management Investment Advisers, LLC and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.