Columbia Management has launched the Columbia Flexible Capital Income Fund, which seeks to provide income generation and capital appreciation.
Unlike other income funds, this fund explores asset classes not found in traditional balanced funds, such as common and preferred stocks, high and low grade fixed income, bank loans and convertible securities.
“We examine all investment opportunities within a company before putting shareholders’ money to work,” said David King, senior portfolio manager at Columbia. “Instead of simply picking a stock or a bond, we work closely with our equity and fixed income research teams to evaluate the entire capital structure of a company.”
For yield, the fund will seek out lower-quality fixed income, and for capital appreciation, the fund will invest in high-quality equities.
“The Columbia Flexible Capital Income Fund isn’t constrained by the same boundaries found in conventional balanced funds,” said Christopher Thompson, head of product and marketing at Columbia. “We believe this experienced management team offers individual investors and financial advisers the potential to earn a reasonable level of income in a very challenging environment.”