Columbia Emerging Markets Bond Fund (REBAX)

Columbia Emerging Markets Bond Fund is part of fixed income mutual fund. This taxable bond fund focuses its investment in emerging markets debt. More fund review can be found below.

Columbia Emerging Markets Bond A (REBAX)

The investment aim of Columbia Emerging Markets Bond fund is to provide investors with high total return from current income and capital appreciation. This mutual fund typically utilizes majority of net assets in emerging markets countries bonds. It may invests in debt of companies which earn 50% or more of their total revenues produced in emerging markets countries or from sales made in emerging markets countries.

Fund Profile

REBAX fund

• Fund Inception Date: Feb 16, 2006
• Ticker Symbol: REBAX (Class A)
• CUSIP: 19763P184
• Beta (3yr): 0.72
• Rank in category (YTD): 46%
• Category: Emerging Markets Bond
• Yield: 5.81%
• Capital Gains: 0%
• Expense Ratio: 1.28%
• Net Assets: $ 548.90 million
• Number of Years Up: 4 years
• Number of Years Down: 1 year
• Average Duration: 6.70 years
• Average Maturity: 10.42 years
• Annual Turnover Rate: 24.00%

updated on 8/11/2012

This emerging markets bond fund was first introduced to public in February 2006. It has total net assets of $548.90 million. The 12-month dividend yield is 5.81%. The latest dividend distribution was done in March 23, 2012 ($0.06). This fund’s expense ratio of 1.28% is very similar to the average ratio in the Emerging Markets Bond category (1.27%). Nicholas Pifer and James Carlen are the current portfolio managers. This fund also has 0.25% management fee and 4.75% front end sales load.

Morningstar ranks this bond fund with 2-stars rating. Since its inception, the only year it performed with negative return was in 2008 (-19.57%). As of May 2012, it has YTD return of 7.32%. Based on the load adjusted returns, this taxable bond fund has returned 7.99% over the past 5-year. The yearly performance of this fund is as below:

• Year 2007: 5.76%
• Year 2008: -19.57%
• Year 2009: 41.73%
• Year 2010: 15.86%

This Columbia Emerging Markets Bond is available in many classes, such as Class B (CMBBX), Class C (REBCX), Class I (RSMIX), Class R (CMBRX), Class R4 (CMKRX), Class W (REMWX) and Class Z (CMBZX). The average duration is 6.70 years and average maturity is 10.42 years. This REBAX fund can be purchased from 70 brokerages, like Scottrade Load, E Trade Financial, JP Morgan, Ameriprise Brokerage, Fidelity Institutional Funds Network, Morgan Stanley – Brokerage Accounts, etc. The minimum initial investment needed is $2,000.

The top holdings as of March 2012 are Republic of Uruguay Orient (3.52%), Petroleos de Venezuela (2.87%), Mexican Bonos (2.33%), Republic of Venezuela (2.11%) and GAZ Capital SA (1.95%). The top sector allocations are Quasi Sovereign (36.6%), Sovereign External (32.0%) and Local Currency (19.5%).

Previous: Best Emerging Markets Bond Mutual Funds 2012

According to the fund prospectus, the investment risks are: Active Management Risk, Credit Risk, Geographic Concentration Risk, High-Yield Securities Risk, Interest Rate Risk, Issuer Risk, Liquidity Risk, Market Risk, Non-Diversification Risk, Foreign/ Emerging Markets Investing risk, etc.

Goods:

• Good track record
• Low portfolio turnover rate

Bads:

• Badly ranked by Morningstar
• It has a sales load

Disclosure: No Position