Graphs represent policy portfolio allocations for the neutral market state. Actual portfolio allocations will vary due to market state repositioning and tactical allocation decisions.
These managed account solutions are only available through investment professionals. Not all strategies may be available on all platforms, and fees and terms may vary. Managed account programs may not be appropriate for all investors.
Investment risks — Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The portfolios are subject to the investment performance (positive or negative), risks and expenses of underlying funds in which they invest. Asset allocation does not assure a profit or protect against loss. Alternative investments involve substantial risks and are more volatile than traditional investments, making them more suitable for investors with an above average tolerance for risk. ETFs trade like stocks, are subject to investment risk and will fluctuate in market value. Investment products, including shares of mutual funds, are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution. Investing in derivatives is a specialized activity that involves special risks that subject the portfolio to significant loss potential, including when used as leverage, and may result in greater fluctuation in portfolio value. The portfolio’s use of leverage allows for investment exposure in excess of net assets, thereby magnifying volatility of returns and risk of loss. Counterparty risk is the risk that a counterparty to a transaction in a financial instrument held by investments inside the portfolio(s) may become insolvent or otherwise fail to perform its obligations. As a result, the underlying fund may obtain no or limited recovery of its investment, and any recovery may be significantly delayed. Commodity investments may be affected by the overall market and industry- and commodity-specific factors and may be more volatile and less liquid than other investments. Short positions (where the underlying asset is not owned) can create unlimited risk. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different financial and accounting standards. Risks are enhanced for emerging market issuers. 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 portfolio, negatively impacting its performance and NAV. Falling rates may result in the portfolio investing in lower yielding debt instruments, lowering the portfolio’s income and yield. These risks may be heightened for longer maturity and duration securities. Interest payments on inflation-protected securities may be more volatile than interest paid on ordinary bonds. Inflation-protected securitities can provide investors with a hedge against inflation, as the securities have an inflation adjustment feature which helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bonds typically have lower yields-to-maturity than conventional duration equivalent fixed rate bonds. In periods of deflation, inflation-protected securities may provide no income and will likely decline in price, which could result in losses.
Columbia Management Investment Advisers, LLC (Columbia) is the investment manager for the Active Risk Allocation Portfolios. Columbia is responsible for all strategy and investment decisions for the model portfolios provided to the program sponsor.
Advisory services provided by Columbia Management Capital Advisers, an operating division of Columbia Management Investment Advisers, LLC (“CMIA”) that offers investment management and related services to clients participating in various types of wrap programs.