Offers innovative approach to income investing
BOSTON--(BUSINESS WIRE)--
Columbia Management today announced the launch of the Columbia Flexible
Capital Income Fund (CFIAX), which seeks to provide income generation
and capital appreciation. The fund’s experienced management team takes
an innovative approach to income investing by exploring asset classes
not found in traditional balanced funds.
“We examine all investment opportunities within a company before putting
shareholders’ money to work,” said David King, CFA, senior portfolio
manager at Columbia Management. “Instead of simply picking a stock or a
bond, we work closely with our equity and fixed income research teams to
evaluate the entire capital structure of a company.”
The fund’s wide-ranging investment possibilities include common and
preferred stocks, high and low grade bonds, bank loans and convertible
securities.
“Many investors avoid or ignore these opportunities. They could be
missing out on securities with the correct risk/reward profile for their
portfolios,” said Yan Jin, senior portfolio manager at Columbia
Management.
The fund’s managers seek higher yield using lower-quality fixed income
investments, while investing in higher-quality equities for capital
appreciation. Many traditional balanced funds do the opposite, investing
in higher-quality fixed income products with lower yield and more
aggressive equities.
“The Columbia Flexible Capital Income Fund isn’t constrained by the same
boundaries found in conventional balanced funds,” said Christopher
Thompson, head of product and marketing at Columbia Management. “We
believe this experienced management team offers individual investors and
financial advisors the potential to earn a reasonable level of income in
a very challenging environment.”
About the portfolio managers:
David King, CFA, is senior
portfolio manager with the Columbia Management asset allocation team. He
joined the firm in 2010 and began his investment career in 1983. Mr.
King earned a B.S. in administration from the University of New
Hampshire and an M.B.A. from Harvard Business School.
Yan Jin is senior portfolio manager of income strategies at Columbia
Management. He joined the firm in 2002 and began his investment career
in 1998. Mr. Jin earned an M.A. in economics from North Carolina State
University.
For more information, visit http://performance.columbiamanagement.com/mutualFunds/details/fund-424/class-A#overview
About Columbia Management:
Columbia Management is the
seventh largest manager of long-term mutual fund assets with $362
billion under management as of June 30, 2011. Columbia Management is a
subsidiary of Ameriprise Financial, Inc. (NYSE: AMP). For more
information, please visit columbiamangement.com.
Investors should consider the investment objectives, risks, charges
and expenses of a mutual fund carefully before investing. For a free
prospectus, which contains this and other important information about
the funds, visit ColumbiaManagement.com. The prospectus should be read
carefully before investing.
The Columbia Flexible Capital Income Fund may invest in debt, equity,
and/or convertible securities. The market value of securities may fall
or fail to rise. Market risk may affect a single issuer, sector of the
economy, industry, or the market as a whole. The market value of
securities may fluctuate, sometimes rapidly and unpredictably.
There are risks associated with fixed income investments, including
credit risk, interest rate risk, and prepayment and extension risk. In
general, bond prices rise when interest rates fall and vice versa. This
effect is more pronounced for longer-term securities.
The Fund’s investment in below-investment grade loans or other debt
securities, commonly called “high-yield” or “junk,” exposes the Fund to
a greater risk of loss of principal and income than a fund that invests
solely or primarily in investment grade loans or other debt securities.
High-yield securities are considered to be predominantly speculative
with respect to the issuer’s capacity to pay interest and repay
principal. Convertible securities are subject to the usual risks
associated with debt securities, such as interest rate risk and credit
risk. Convertible securities also react to changes in the value of the
common stock into which they convert, and are thus subject to market
risk. The Fund may be forced to convert a convertible security at an
inopportune time, which may decrease the Fund’s return. Value securities
involve the risk that they may never reach what the portfolio managers
believe is their full market value either because the market fails to
recognize the stock’s intrinsic worth or the portfolio managers
misgauged that worth. They also may decline in price, even though in
theory they are already undervalued. Because different types of stocks
tend to shift in and out of favor depending on market and economic
conditions, the Fund’s performance may sometimes be lower or higher than
that of other types of funds (such as those emphasizing growth stocks).
The portfolio managers may actively and frequently trade securities in
the Fund’s portfolio to carry out its investment strategies. A high
portfolio turnover rate increases transaction costs, which may increase
the Fund’s expenses. Frequent and active trading may also cause adverse
tax consequences for investors in the Fund due to an increase in
short-term capital gains.
Investments in foreign securities involve certain risks not associated
with investments in U.S. companies, including political, regulatory,
economic, social, and other conditions or events occurring in the
particular country, as well as fluctuations in its currency and the
risks associated with less developed custody and settlement practices.
Risks are particularly significant in emerging markets. See the
prospectus for more information on these and other risks associated with
the Fund.
Investment products are not federally or FDIC-insured, are not deposits
or obligations of, or guaranteed by any financial institution, and
involve investment risks including possible loss of principal and
fluctuation in value.
Columbia Funds are distributed by Columbia Management Investment
Distributors, Inc., member FINRA, and managed by Columbia Management
Investment Advisers, LLC.
© 2011 Columbia Management Investment Advisers, LLC. All rights reserved.
Source: Ameriprise Financial, Inc.
Contact:
Ameriprise Financial, Inc.
Charlie Keller
617-747-0462
charles.r.keller@ampf.com
or
Ryan
Lund
612-671-3459
ryan.s.lund@ampf.com