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COLUMBIA HIGH QUALITY HIGH YIELD FIXED INCOME AS OF MARCH 31, 2017 Investment Approach Strategy Details The strategy takes a dynamic approach to investing, combining bottom-up and top-down analysis to uncover relative value opportunities in the broad high-yield market. Rigorous, in-house credit research using a proprietary risk and relative value rating system that helps position the portfolio based on the trade-off between risk and expected return. Our bottom-up fundamental research typically contributes at least two-thirds of the alpha generated. We combine bottom-up fundamental credit research with a top-down strategic review to seek consistent, competitive risk-adjusted returns across varying market environments. Composite Inception 06/30/1999 Total High Yield Assets $18,010 million Vehicle Types Separate Account Commingled Vehicles Trailing Returns (%) Columbia High Quality High Yield Fixed Income (gross) Columbia High Quality High Yield Fixed Income (net) BofA ML U.S. High Yield Cash Pay BB-B Constrained Index Portfolio Management Jennifer Ponce de Leon YTD (cum.) 1-year 3-year 5-year 10-year Since Inception 2.32 2.16 2.28 10.83 10.13 13.78 4.99 4.34 4.65 6.90 6.27 6.60 7.74 7.15 6.92 8.26 7.69 7.37 Brian Lavin, CFA 32 years experience Mark Van Holland, CFA 23 years experience Brett Kaufman 22 years experience Distinguishing Features ■ Investment Process ■ Rigorous bottom-up fundamental credit research ■ ■ Strong and independent research is the cornerstone of our process Proprietary risk and relative value rating system Tactical portfolio management ■ Adjust quality, capital structure and industry positioning to take advantage of different market environments Portfolio construction ■ Experienced and dedicated portfolio managers and analysts are full partners in the portfolio construction and monitoring process ■ Relative value decisions are made to trade off risk and reward to optimize portfolio positioning Constant focus on downside risk Dynamic position management according to proprietary risk and relative value ratings ■ Well-diversified portfolios and a strong sell discipline are good examples of our downside risk management approach ■ All values expressed in U.S. Dollars unless otherwise noted. Past performance does not guarantee future results. For more information please visit: www.columbiathreadneedle.com For institutional use only. © 2017 Columbia Management Investment Advisers, LLC. All Rights Reserved. 29 years experience ■ ■ ■ Experienced team of high yield specialists who navigate through changing market conditions executing a disciplined and repeatable process Rigorous, independent proprietary credit research produced by a team of dedicated high yield career analysts Credit selection that seeks to maximize return per unit of risk, resulting in reduced volatility of returns Combined bottom-up and top-down approach to pursue strong risk-adjusted returns through varying markets Excellent long term historical track record COLUMBIA HIGH QUALITY HIGH YIELD FIXED INCOME AS OF MARCH 31, 2017 Portfolio Characteristics† Since Inception Risk Statistics† Portfolio Index 213 681 Relative return .91 Number of issues 327 1,590 Tracking Error 1.88 Yield to worst (%) 4.89 5.00 Information Ratio 0.48 Average effective duration (years) 4.17 4.19 Alpha 1.53 Option adjusted spread (bps) 291 306 Beta 0.88 Average maturity (WAL) (Yrs) 5.24 5.22 R-Squared 0.95 Standard deviation 7.31 Sharpe ratio 0.96 Number of Issuers Average Credit Quality Portfolio Ba3 BB3 102.08 102.77 Turnover rate (1-year, %) 58 — Index Standard deviation 8.14 Turnover rate (3-year, %) 56 — Index Sharpe ratio 0.75 Turnover rate (5-year, %) 55 — Average Price Credit Rating (% net assets)† Internal Ratings Exposure Rating BBB Portfolio 1.8 Index 0.0 BB 44.6 56.7 B 42.2 42.8 6.5 0.0 CCC Risk Ratings HY Risk 1 HY Risk 2 HY Risk 3 HY Risk 4 IG † % Market Value 9.4 74.1 15.9 0.1 0.5 Relative Value Ratings IG 1 2 3 4 CC 0.1 0.0 Cash and Cash Equivalents 4.9 0.6 % Market Value 0.5 9.3 50.8 36.0 3.4 vs BofAML US High Yield Cash pay BB-B Constrained Index For institutional use only. © 2017 Columbia Management Investment Advisers, LLC. All Rights Reserved. COLUMBIA HIGH QUALITY HIGH YIELD FIXED INCOME AS OF MARCH 31, 2017 Important disclosures for performance and asset information on page 1: There is no guarantee the objective will be achieved or that any return expectations will be met. Past performance does not guarantee future results. Periods over one year are annualized. Portfolios are valued and composite returns are calculated and stated in U.S. dollars. Returns are calculated net of transaction costs and non-reclaimable withholding taxes on dividends, interest, and capital gains, and reflect the reinvestment of dividends and other earnings. Composite performance is based on the Columbia High Yield Fixed Income composite. Net-of-fees performance returns are calculated by deducting from the gross performance return the highest tier of the fee schedule in effect for the respective time period. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. Not all vehicles are available in every jurisdiction and certain vehicles may be offered by affiliates. Source: Columbia Management Investments. This document contains supplemental information, including portfolio characteristics and historical risk and return analysis, which complements the composite presentation provided on the following page. The supplemental information is designed to provide the proper context in which to better understand the composite presentation. Risk/return characteristics are based on gross of fees performance of the Columbia High Quality High Yield Fixed Income composite and are annualized as appropriate. All other information is based on a representative account in the composite. Risk and relative value ratings reflect the Team’s internal, proprietary ratings system. Our internal risk rating system is as follows: Risk 1 indicates an issue that we believe has solid fundamentals and a stable or improving outlook. Risk 2 indicates a credit that we believe to have an adequate financial condition. Risk 3 indicates an issue that may have deterioration in credit quality or experience volatility in credit quality in the near future, and Risk 4 indicates an issue that we believe has weak or deteriorating financial condition. Our internal relative value rating system indicates our performance expectations for the credit vs. the index over the next 12 months as follows: 1 = strong outperform (150%), 2 = outperform (110-150%), 3 = market perform (90-110%), 4 = underperform (50-90%), 5= sell ( Columbia Management Investments claims compliance with the Global Investment Performance Standards (GIPS®). Columbia Management Investment Advisers, LLC, an SEC-registered investment adviser (formerly known as RiverSource Investments, LLC prior to May 1, 2010), offers investment products and services to institutional and retail markets. For purposes of compliance with the GIPS standards, Columbia Management Investment Advisers, LLC has defined the Firm as Columbia Management Investments (prior to May 1, 2010 the Firm was known as RiverSource Institutional Advisers; prior to August 1, 2005 the Firm was known as American Express Asset Management), an operating division of Columbia Management Investment Advisers, LLC that offers investment management and related services to institutional clients. The Firm was redefined in January 2011 to include stable value assets that were previously excluded from the firm. As of May 1, 2010, certain long- term assets of Columbia Management Advisers, LLC (“CMA”) were merged into Columbia Management Investments and included in firm assets as of that date. The Firm was redefined in January 2011 to include stable value assets that were previously excluded from the firm. Beginning March 30, 2015, the Columbia and Threadneedle group of companies, which includes multiple separate and distinct GIPS-compliant firms, began using the global offering brand Columbia Threadneedle Investments. The firm’s fees are available on request and may also be found in Part 2A of the Columbia Management Investment Advisers, LLC Form ADV. To receive a list of composite descriptions of Columbia Management Investments and/or a presentation that complies with the GIPS standards, contact Heather Heald at (617) 747-0436, or write to Columbia Management Investments, 225 Franklin Street, 30th floor, Boston, MA 02110, or [email protected]. The strategy consists of discretionary high yield fixed income portfolios which primarily invest in marketable high yield debt securities rated B or above. Accounts in the composite are not able to purchase CCC or lower rated securities. The composite was created April 1, 2005. The BofA Merrill Lynch U.S. High Yield Cash Pay BB-B Rated Constrained Index is an unmanaged index of high yield bonds. The index is subject to a 2% cap on allocation to any one issuer. The 2% cap is intended to provide broad diversification and better reflect the overall character of the high yield market. The index reflects reinvestment of all distributions and changes in market prices. It is not possible to invest directly in an index. There is no guarantee that the investment objectives will be achieved or that return expectations will be met. Care should be used when comparing these results to those published by other investment advisers, other investment vehicles, and unmanaged indices due to possible differences in calculation methods. Registration with the SEC as an investment adviser does not imply a certain level of skill or training. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. For institutional use only. © 2017 Columbia Management Investment Advisers, LLC. All Rights Reserved.