Columbia Threadneedle Investments today announced the launch of
the Columbia U.S. Social Bond Fund (CONAX), a fixed income
mutual fund that seeks total return through investments that aim to
support and fund socially beneficial activities and
developments.
The fund is designed as a new solution for investors who want to
support positive social outcomes while they pursue competitive
financial returns. Additionally, the fund offers investors
potential tax advantages.
The portfolio managers invest in municipal and corporate bonds.
They target municipal bonds in sectors they believe are aimed
toward positive environmental and social development, such as
education, health care, community services, housing, water and
other socially impactful sectors. The portfolio managers, when
considering investments in corporate bonds, will review the
sustainability and social impact of the issuer’s activities,
products and services. The social outcome of each security will be
assessed using a proprietary framework. In addition, because a
majority of the fund is invested in municipal bonds, it qualifies
as a municipal bond fund and the income from the municipal bond
holdings will be exempt from federal income taxes.1
The fund is managed by James Dearborn, Chad Farrington, CFA and
Thomas Murphy, CFA.
“We’re excited about the launch of the Columbia U.S. Social Bond
Fund. This fund offers investors the potential for competitive
after-tax returns that can be used as part of a core fixed income
allocation. We will use the portfolio’s capital to find debt
securities that not only meet our rigorous investment standards but
also whose proceeds are used to support positive social change,”
said James Dearborn, Portfolio Manager and Head of Municipal Bonds
at Columbia Threadneedle Investments.
Columbia Threadneedle Investments chose Sustainalytics, a
leading provider of environmental, social and governance (ESG)
research, to collaborate with the fund’s managers in the
development of a proprietary social assessment framework. Within
that framework, bonds that have been identified as fundamentally
sound investments are then assessed on their positive social
impact. Sustainalytics will also produce an independent social
impact report for the fund annually.
"We are delighted to be partnering with Columbia Threadneedle
Investments on this innovative offering,” said Sustainalytics’ CEO
Michael Jantzi. “Enabling investors to achieve competitive
financial returns while having a positive impact on society is a
fundamental tenet of Sustainalytics’ core ESG research mission. We
look forward to working with Columbia Threadneedle Investments to
deliver on the fund’s investment strategy.”
In making investment decisions, the fund’s managers draw on
Columbia Threadneedle Investments’ rigorous fundamental credit
research as well as our global Environmental, Social and Governance
(“ESG”) research and investment capabilities. Columbia Threadneedle
Investments has integrated ESG considerations into its investment
research capabilities and ownership practices globally in the
belief that these factors can benefit long-term financial
performance. This fund is the second fixed income offering from
Columbia Threadneedle Investments for investors interested in
supporting positive social outcomes, the first being the
Threadneedle UK Social Bond Fund, which launched in December
2013.2
Robert McConnaughey, Global Head of Research at Columbia
Threadneedle Investments, added, “Socially responsible investing
(“SRI”) has historically come with the perception that investors
had to potentially compromise their financial goals to include a
focus on social responsibility in their portfolio. We believe that
does not have to be the case. There is a growing evolution in SRI
from the traditional negative screening approach – or the avoidance
of certain investments – to the proactive pursuit of investments in
financially sound and well-disciplined companies, municipalities,
and other entities that are also seeking to make a positive impact
on society. We believe that a research approach that incorporates
ESG factors as part of broader fundamental process can provide a
more complete perspective on longer term risk and opportunities for
investors.”
About the portfolio managers:James Dearborn is the
Head of Municipal Bond Investments for Columbia Threadneedle
Investments. Mr. Dearborn’s investment team manages nearly 30
mutual and common trust funds, as well as numerous institutional
and high net worth accounts. He joined the firm in 1996 and has
been a member of the investment community since 1986.
Mr. Dearborn earned a B.A. from Wesleyan University in
Connecticut and an M.A. in public administration from the Maxwell
School of Citizenship and Public Affairs at Syracuse
University.
Chad Farrington is the Head of Municipal Bond Credit
Research and a senior municipal fixed income portfolio manager for
Columbia Threadneedle Investments. Mr. Farrington manages a high
yield portfolio and also serves as a senior credit analyst,
focusing on senior living, multi-family and other traditional high
yield products. He joined the firm in 2003 and has been a member of
the investment community since 1998.
Mr. Farrington earned a B.S. in business finance and a minor in
economics from Montana State University. He holds the Chartered
Financial Analyst designation. In addition, he is a member of the
Boston Security Analysts Society, Boston Municipal Analyst Forum
and the National Federation of Municipal Analysts.
Tom Murphy is Head of Global Investment Grade Credit at
Columbia Threadneedle Investments. He joined the firm in 2002 and
has been a member of the investment community since 1986.
Mr. Murphy earned a B.B.A. from the University of Notre Dame and
an M.B.A. from the University of Michigan. He holds the Chartered
Financial Analyst designation.
About Columbia Threadneedle Investments:Columbia
Threadneedle Investments is a leading global asset management group
that provides a broad range of actively managed investment
strategies and solutions for individual, institutional and
corporate clients around the world.
With more than 2,000 people, including over 450 investment
professionals based in North America, Europe and Asia, we manage
$506 billion3 of assets across developed and emerging market
equities, fixed income, asset allocation solutions and
alternatives.
Columbia Threadneedle Investments is the global asset management
group of Ameriprise Financial, Inc. (NYSE: AMP).
For more information, please visit columbiathreadneedle.com/us.
Follow us on Twitter @CTInvest_US.
About Sustainalytics:Headquartered in Amsterdam,
Sustainalytics is an independent ESG research and analysis firm
supporting investors around the world with the development and
implementation of responsible investment strategies. With 13
offices globally, Sustainalytics partners with institutional
investors who integrate environmental, social and governance
information and assessments into their investment decisions. Today,
the firm has over 200 staff members, including more than 100
analysts with varied multidisciplinary expertise of more than 40
industries. For the past three years, Sustainalytics was voted best
independent responsible investment research firm in Extel’s IRRI
survey. For more information, visit www.sustainalytics.com.
Notes to Editors:December 2013 – Threadneedle Asset
Management Limited launches Threadneedle UK Social Bond Fund with
Big Issues Invest.October 2014 – Columbia Management Investment
Advisers, LLC becomes a UN PRI signatory.April 2015 – Columbia
Management Investment Advisers, LLC publishes PRI policy
statement.
1 Although it may be subject to the federal alternative minimum
tax.2 Managed by Threadneedle Asset Management Limited and
available only to United Kingdom investors through an OEIC
structure.3 Includes the combined assets under management of the
Columbia and Threadneedle group of companies as of December 31,
2014. Source: Ameriprise Financial Q4 2014 earnings release.
Columbia Threadneedle Investments and Sustainalytics are not
affiliated.
Columbia Threadneedle Investments is the global brand name of
the Columbia and Threadneedle group of companies.
Investment products offered through Columbia Management
Investment Distributors, Inc., member FINRA. Advisory services
provided by Columbia Management Investment Advisers, LLC.
Investors should consider the investment objectives, risks,
charges and expenses of a mutual fund carefully before investing.
For a free prospectus or a summary prospectus, which contains this
and other important information about the funds, visit
columbiathreadneedle.com/us. Read the prospectus
carefully before investing.
Not all funds are available in all jurisdictions, to all
investors, or through all firms.
Market risk may affect a single issuer, sector of the
economy, industry or the market as a whole. Social impact
investing may increase risk due to the limitations and constraints
involved in investment selection and, as a result, the fund may
underperform other funds that do not consider the social impact.
Fixed-income securities present issuer default risk. A rise
in interest rates may result in a price decline of
fixed-income instruments held by the fund, negatively impacting its
performance and NAV. Falling rates may result in the fund investing
in lower yielding debt instruments, lowering the fund’s income and
yield. These risks may be heightened for longer maturity and
duration securities. Non-investment-grade (high-yield or
junk) securities present greater price volatility and more risk to
principal and income than higher rated securities. Prepayment
and extension risk exists as a loan, bond or other investment
may be called, prepaid or redeemed before maturity and that similar
yielding investments may not be available for purchase. The fund
invests substantially in municipal securities and will be
affected by tax, legislative, regulatory, demographic or political
changes, as well as changes impacting a state’s financial, economic
or other conditions. A relatively small number of tax-exempt
issuers may necessitate the fund investing more heavily in a single
issuer and, therefore, be more exposed to the risk of loss than a
fund that invests more broadly. The fund may invest significantly
in issuers within a particular sector, which may be
negatively affected by market, economic or other conditions, making
the fund more vulnerable to unfavorable developments in the sector.
Market or other (e.g., interest rate) environments may adversely
affect the liquidity of fund investments, negatively
impacting their price. Generally, the less liquid the market at the
time the fund sells a holding, the greater the risk of loss or
decline of value to the fund. As a non-diversified fund,
fewer investments could have a greater effect on performance.
© 2015 Columbia Management Investment Advisers, LLC. All rights
reserved.
AdTrax 1169702
For Columbia Threadneedle InvestmentsRyan Lund,
612-671-3459ryan.s.lund@ampf.comorCarlos Melville,
617-897-9384carlos.melville@ampf.com
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