Overseas Value Strategy

Overview

Investment approach

The Strategy seeks to deliver economically meaningful levels of outperformance, consistently through the economic cycle. The goal is to provide upside participation plus downside protection, generating competitive absolute and risk-adjusted returns. The team targets companies with compelling value, higher growth, better returns on capital, higher profitability, lower leverage and catalysts for change.

Distinguishing Features

  • Seasoned, stable investment team with extensive international investing experience. The portfolio managers have worked together since 2005.
  • For a stock to be included in the portfolio it must pass three independent but integrated analytical tests: fundamental analysis, quantitative analysis and a macroeconomic assessment.
  • The team is supported by traders and central research analysts across the globe, with analysts located in Boston, New York, London and Singapore.

Investment Process

Define and evaluate investable universe

  • Stocks must have free float exceeding $500 million to be considered; approximately 3,000 developed market stocks and 1,000 emerging market stocks qualify.
  • Candidates are typically constituents of universes represented by the MSCI World Ex US Index, the S&P BMI Global Ex US Index and the MSCI ACWI Index.
  • Ideas can be generated through either our fundamental, quantitative or macroeconomic analyses.

 

Construct portfolio and manage risk

  • Position active weight is limited to +/- 200 bps.
  • Sector/country active weights are limited to +/- 700bps.
  • Risk management is very important; stocks will be trimmed or sold as the contribution to active risk approaches 10%.

Conduct research and valuation analysis

  • The Strategy aims to hold 90-120 stocks that are attractively priced with a high degree of growth and quality.
  • Fundamentally, stocks must show a strong competitive position, strong management and quality balance sheets.
  • Quantitatively, stocks are scored on value, quality and momentum measures.
  • Macroeconomic assessments provide context in marketplace for companies and helps the team understand the cost of doing business in different phases of the economic cycle.

Fred Copper, CFA

29 years industry experience

DAISUKE NOMOTO, CMA (SAAJ)

26 years industry experience

Overseas SMA Completion Portfolio Information

This fund is available only to clients participating in the Overseas Value Managed Account Strategy offered by Columbia Threadneedle Investments

The Columbia Overseas Value Managed Account gains exposure to foreign ordinary shares by investing in the Overseas SMA Completion Portfolio, a commingled vehicle managed by Columbia Management Investment Advisors, LLC. This construct permits access to foreign investments over and above that which would otherwise be achievable within smaller separate accounts. It is our belief that this approach provides a differentiated experience for clients seeking foreign equity exposure within their managed account portfolio.

Fund resources

Summary Prospectus
Prospectus
SAI
Annual Report
Semiannual Report
Holdings

 

Disclosures

There is no guarantee the objective will be achieved or that any return expectations will be met.

Advisory services provided by Columbia Management Capital Advisers, an operating division of Columbia Management Investment Advisers, LLC (“CMIA”) an SEC-registered investment adviser that offers investment management and related services to clients participating in various types of wrap programs.

Columbia Management Investment Advisers, LLC and its affiliates do not offer tax advice. Investors should consult with their tax advisor regarding their specific situation.

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 require a minimum asset level and may not be suitable for all investors.

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