Columbia Variable Portfolio - Diversified Absolute Return Fund

Data updated: 2020-05-28

C000112078 — Columbia Variable Portfolio - Diversified Absolute Return Fund. Money Market · $255.52M AUM. Holdings, fees, performance and SEC filings.

C000112078 Fund Overview

Columbia Variable Portfolio - Diversified Absolute Return Fund is a US mutual fund managed by Columbia Funds Variable Insurance Trust, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

C000112078 Investment Objective and Strategy

Columbia Variable Portfolio - Diversified Absolute Return Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Columbia Funds Variable Insurance Trust.

Investment objective

Columbia Variable Portfolio – Diversified Absolute Return Fund (the Fund) seeks to provide shareholders with absolute (positive) returns.

Principal investment strategy

The Fund pursues absolute (positive) returns through a diversified portfolio reflecting multiple asset classes and various investment and hedging strategies employed across equity, fixed income and other markets, such as commodities markets, while seeking to capitalize on market inefficiencies. Although the specific strategies the Fund pursues and the manner in which the Fund pursues such strategies may change from time to time, the Fund is currently expected to combine tactical beta, alternative beta and alpha strategies in seeking the Funds investment objective. (In general, beta is a measure of price volatility resulting from general market movements and alpha is a measure of return resulting from active management.) The Funds investment manager, Columbia Management Investment Advisers, LLC (Columbia Management or the Investment Manager) may use fundamental and quantitative methods to identify and capitalize on short-term mispricings within and across traditional asset classes and markets, such as stocks and bonds.

This strategy may be referred to as a tactical beta strategy in that it seeks opportunities to earn returns from price movements of broad markets. For instance, if the Investment Manager believes the U.S. equity market is undervalued, the Investment Manager may seek to capitalize on this mispricing by investing in futures on a U.S. equities index. The Investment Manager may also use fundamental and quantitative methods to identify and capitalize on systemic and structural market inefficiencies. This strategy may be referred to as an alternative beta strategy in that it seeks to generate returns with relatively low correlation to overall market movements by employing a systematic, rules-based approach. For instance, the Fund may take a long position in a broad basket of equities that the Investment Manager believes are attractively valued and take a short position in a broad basket of equities that the Investment Manager believes are unattractively valued, in order to generate returns from the relative price difference generally expected in the equity markets over time between undervalued and overvalued equities (i.e., the value premium).

The Investment Manager will also allocate assets to long, short and other strategies intended to generate returns that are not dependent on overall market direction. These strategies may be referred to as alpha strategies in that they are intended to have relatively low correlation to market movements and are derived from active management. The Funds investments and strategies are expected to employ both long and short positions in foreign and domestic equities (including common stock, preferred stock and convertible securities), fixed-income, floating rate and other debt securities (including U.S. government obligations, sovereign and quasi-sovereign debt obligations, asset-backed securities, exchange traded notes, and mortgage-backed securities), other commodity-related investments, and other investment companies (including mutual funds, closed-end funds and exchange-traded funds (ETFs)).

The Fund may gain investment exposure to these securities and instruments directly or indirectly through investment in one or more Subsidiaries (as defined below) or affiliated and third party investment companies. The Fund may invest without limit in foreign investments (including currencies), which may include investments in emerging markets, and in investments that are rated below investment-grade or, if unrated, deemed to be of comparable quality (commonly referred to as high yield investments or junk bonds). The Fund may invest in derivatives, such as forward contracts (including forward foreign currency contracts), futures (including currency futures, equity futures, index futures (including equity, fixed income and volatility index futures), interest rate futures and other bond futures), options (including options on stocks, indexes, and futures), swaps contracts (including credit default swaps, credit default swap indexes, interest rate swaps, and total return swaps), and options on swaps (commonly known as swaptions), in an effort to produce incremental earnings and/or to hedge existing positions.

The Funds use of derivatives creates leverage (market exposure in excess of the Funds assets) in the Funds portfolio. In addition, under normal circumstances, the Fund uses forward foreign currency contracts in seeking to enhance returns based on fluctuations in the values of various foreign currencies relative to the U.S. dollar (the Currency Overlay Strategy). The Fund gains economic exposure to foreign currencies through its investment in forward foreign currency contracts comparable to the exposure that it would have had if it had bought or sold the foreign currencies directly. The Fund may invest directly in derivatives, or indirectly in derivatives by investing up to 25% of its total assets in one or more offshore, wholly-owned subsidiaries (each, a Subsidiary, and, collectively, the Subsidiaries).

Generally, Subsidiaries will invest in commodity futures, financial futures, option and swap contracts, fixed income securities, pooled investment vehicles, including those that are not registered pursuant to the Investment Company Act of 1940, as amended (the 1940 Act), and other investments intended to serve as margin or collateral for the Subsidiaries derivative positions. The Fund expects to hold a significant amount of cash, money market instruments (which may include investments in one or more affiliated or unaffiliated money market funds or similar vehicles) or other high-quality, short-term investments to cover obligations with respect to, or that may result from, the Funds investments in forward foreign currency contracts, currency futures contracts, commodity-linked investments or other derivatives.

The Funds investment strategy may involve the frequent trading of portfolio securities.

C000112078 Costs and Fees

C000112078 costs about $218 per $10,000 invested per year in fund expenses.

  • Net expense ratio: 2.18%
  • Gross expense ratio: 2.22%
  • Portfolio turnover: 178%
  • Brokerage commissions: 5.19 bps of average net assets (SEC N-CEN)

C000112078 Cashflows

Over the 12 months to 2020-03, Columbia Variable Portfolio - Diversified Absolute Return Fund had net inflows of $432.91K, from monthly SEC N-PORT filings.

MonthNet flow
2020-03$12.67K
2020-02$319.59K
2020-01−$24.10K
2019-12$183.37K
2019-11−$319.80K
2019-10$997

C000112078 Debt Constituents

No individual debt constituents are reported in Columbia Variable Portfolio - Diversified Absolute Return Fund's latest SEC N-PORT filing.

C000112078 Prospectus and SEC Filings

Official Columbia Variable Portfolio - Diversified Absolute Return Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Money Market funds tracked on ABC INVEST:

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.