3 / 5 Stars
3 4 2 3 4
Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#5 in Diversified Pacific/Asia
U.S. News evaluated 11 Diversified Pacific/Asia Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 13.94 percent over the past year, 6.01 percent over the past three years, 15.59 percent over the past five years, and 7.20 percent over the past decade.
|Trailing Returns||Updated 11.30.2013|
|Year to date||9.6%|
|3 Years (Annualized)||6.0%|
|5 Years (Annualized)||15.6%|
|10 Years (Annualized)||7.2%|
The Columbia Pacific/Asia fund balances investments between higher-growth opportunities in emerging Asia with more mature companies in developed Asia. According to one of the fund’s managers, Daisuke Nomoto, this approach provides exposure to a broad cross-section of Asia while keeping volatility and risk in check.
As of December 04, 2013, the fund has assets totaling almost $315.75 million invested in 109 different holdings. Its portfolio primarily consists of international, large-cap stocks in the financial services and industrial materials sectors.
Taking charge just months before the global financial meltdown began in late 2007, managers Daisuke Nomoto, Jasmine Huang, and Fred Copper managed to keep the fund in relative good standing through the worst of the crisis, beating the fund’s benchmark and category.
According to the fund’s annual report released in late March 2010, management added Nissan and Honda to the portfolio to increase the fund’s stake in Japan. “We believe that Japan is positioned to do well as the global economy recovers,” the report said. “Stock valuations remain attractive and the country has a new finance minister, who may implement a weaker yen policy.” Nomoto says the fund also has significant stakes in the Bank of Baroda, the third largest public sector bank in India. “Its strength comes from a growing deposit base, the central bank’s proactive measures to steadily improve balance sheet strength, and rising demand for physical asset creation,” Nomoto says. Since investing in the company in Spring 2009, Nomoto says the stock has appreciated 3.7 times, a trend he says indicates that the Indian banking sector will continue to grow in terms of capitalization, asset quality, and profitability. The fund has returned 13.94 percent over the past year and 6.01 percent over the past three years.
Despite the downturn, the fund’s management team has beaten the category average and benchmark over their 20-month tenure, according to Morningstar. The fund has returned 15.59 percent over the past five years and 7.20 percent over the past decade.
Management narrows the field of potential investments using quantitative models, then does more granular research on the most promising names, looking for good fundamentals such as a management team with a strong track record. After this bottom-up approach, the team uses a more global, macroeconomic filter to balance the portfolio’s sector and country weightings.
Role in Portfolio
Morningstar calls this fund a specialty investment.
Longtime manager David Linehan left in September 2007 after Bank of America bought the fund’s advisor, U.S. Trust. Jasmine Huang and Daisuke Nomoto now manage the fund. Fred Copper has since left the fund to manage Columbia’s Masters International Equity Portfolio.
Columbia Pacific/Asia Fund has an expense ratio of 1.52 percent.
Exposure to emerging markets might increase stock price volatility.