Navigate Rates

Investment risks, such as changing interest rates, may present opportunities for fixed-income solutions. Consider a non-traditional approach for navigating interest rates with Columbia Threadneedle Investments.

Predicting how and when interest rates will change can frustrate investors and leave advisors uncertain on a strategy. Instead of viewing fluctuations as an obstacle to your clients’ goals, consider them an opportunity. We’ve created a non-traditional strategy to endure changing rates and thrive in all markets — helping you navigate today's fluctuating market and guide your clients toward success.

Four major risk factors

Duration, credit, inflation and currency risk are all drivers of fixed-income performance, and they affect investments differently. We believe that a multi-sector approach that capitalizes on all four risk factors may lead to better or more diversified outcomes across market cycles. In each case below, one of the four risk factors dominates the overall risk profile, which subjects investors to a narrow range of potential outcomes.

For a closer look at when these risks are most and least attractive, read our white paper, Harnessing Fixed-Income Returns Through the Cycle.

How different risks drive performance of common bond indices Source: BlackRock Solutions, 12/31/15

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Duration risk

A traditional fixed-income portfolio, which typically invests in high-quality, government-related bonds, can leave investors vulnerable to the performance of one single risk factor — duration. Also known as interest rate risk, duration represents the price volatility of a long-term investment in a changing interest rate environment. The longer you hold an investment, the more impact interest rate changes will likely have on returns.

Solutions for Navigating Interest Rates

Columbia Strategic Income Fund

Morningstar Category: Nontraditional Bond

Strategy

This fund aims to deliver a competitive level of income and adapts to market fluctuations by accessing returns associated with global bond market risks: inflation, interest rate changes, credit risk and currency fluctuations.

Benefits

  • Seeks to provide attractive income in all environments
  • Leverages global research capabilities to uncover attractive investment opportunities
  • Designed with a flexible mandate focused on capturing returns through all economic cycles

Rated #1 nontraditional bond fund by U.S. News & World Report**, Columbia Strategic Income Fund is built to provide greater income potential in all phases of an economic cycle — from highs to lows — by leveraging all four global bond market risk factors.2

Award-Winning Investor Newsletter

1The Mutual Fund Education Alliance STAR Awards competition recognizes excellence in mutual fund marketing and communications. Materials were evaluated on educational value, message comprehension, effective design and stated objectives. The Columbia Threadneedle Investor Newsletter won best Retail Electronic Newsletter in the Large Plus Asset Level category in 2011, 2012, 2013 and 2016.