Columbia Management launches Diversified Real Return Fund
Columbia Management has launched the Columbia Diversified Real Return Fund (CDRAX), an open-end fund designed to offer investors inflation protection through a diversified portfolio of inflation hedging and other assets.
The fund is managed by Orhan Imer and Jeffrey Knight.
A diversified real return strategy is designed to generate positive real returns that exceed the rate of inflation over the long term, particularly during periods of rising inflation. The strategy involves an active investment process that uses multiple asset classes to manage the risks inherent in headline inflation and inflation expectations.
The fund will invest in inflation-linked debt securities, commodity-linked investments, floating rate loans and other floating rate instruments to protect investor portfolios against inflation. To gain additional inflation-hedging exposure, the fund may invest in other types of securities that the portfolio management team determines are appropriate, including equity, convertible, and other fixed income securities.
“Even in a low inflation environment, the negative, long-term effects of rising prices on purchasing power are still present," says Imer. “More importantly, rising inflation is a realistic consequence of today’s unprecedented monetary policies. This strategy is designed to help investors with a long-term horizon to protect the purchasing power of their portfolio and generate real returns after inflation.”
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