January 12, 2015
BulletinNews Release
Contact:Campbell Hood
Tel: +44 78 6091 1622
Campbell.Hood@columbiathreadneedle.com

Vee Montebello, FTI Consulting:Tel: +44 7976 075797
Vee.Montebello@fticonsulting.com

COLUMBIA THREADNEEDLE MULTI-MANAGER Q4 2023 FUND WATCH SURVEYSTARK IMPROVEMENT IN NUMBER OF FUNDS CONSISTENTLY OUTPERFORMNG IN FINALQUARTER OF 2023 WHEN COMPARED TO Q4 2022 - BUT NUMBERS DOWN ON Q3 2023•••••39 funds achieved top quartile performance to end of Q4 2023 compared to six in Q4 2022
1.1% decrease in number of top quartile performing funds compared to end Q3 2023
IA Japan sector topped the table - 12.3% of funds delivered top quartile performance249 funds delivered above median returns consistently (262 out of 1,323 funds Q3 2022)
54 of the 56 IA sectors averages made positive ground: the IA Latin American sector leading, gaining
12%LONDON, 17 January 2024: Despite many markets hitting new peaks as 2023 drew to a close, there was a
reduction in the number of funds delivering a consistently top quartile performance over a three-year period tothe end of Q4 2023, compared to the Q3 2024, according to the latest Columbia Threadneedle Investments
Multi-Manager Fund Watch survey.

Fund Watch, a quarterly survey launched in 2008 by the Multi-Manager team at Columbia Threadneedle,
analyses the performance of the funds universe and the IA sectors, providing investors insight into where there
is value to be found within active management. The Consistency Ratio’s historical average range is between 24%. A copy of the full Q4 2023 survey can be downloaded HEREIn Q4 2023 39 funds out of 1,416 achieved this feat, which equates to 2.8% of the selected universe, downfrom 52 funds out of 1,323 funds (3.9%) in Q3 2023. However, the number of funds delivering top quartile
performance remains higher than that seen during the first half of 2023 when 27 out of the 1,286 funds (2.1%)
achieved this feat in Q2, and 23 out of 1,261 funds (1.8%) during Q1.

The CT European Real Estate Securities Fund led the table of IA universe funds in the last quarter of 2023,
whilst the Templeton China Fund compounded the negative sentiment towards Chinese equities as the worst
performing fund in the IA sector.

The performance genie was let out of the bag in the final quarter of the year with 54 of the 56 IA sector
averages making positive ground and 51 of the 56 beating the 1.4% return of the IA Standard Money Market
sector average, compared to nine out of 57 in Q3 2023. The IA Latin American sector was the best returning
sector average, gaining 12%, followed by the IA Technology & Telecom sector, which gained 11.8%, with theIA Property Other sector close behind, gaining 10.3%. The standout underperformer of the quarter was the IA
China/Greater China sector which fell 8.4%, considerably more than the next worse sector which was the IA
UK Direct Property which fell 0.2%.

Echoing its Q3 2023 performance, the IA Japan sector had the most consistently performing top quartile funds
in the fourth quarter with an impressive 12.3% of funds achieving this feat. The next best was the IA Emerging
Markets sector with 9.1% of funds. The IA £ Corporate, UK Equity Income and North American sectors all
failed to have any funds hit the mark with the IA Europe ex UK, IA Global Mixed Bond and IA Sterling Strategic
sectors only having one fund achieving consistently top quartile returns in the three consecutive 12-monthperiods.

Lowering the hurdle rate to above median in each of the last three 12-month periods also saw a fall with 249 of
the 1,416 funds delivering above median returns consistently, compared to 262 funds in Q3 2023. This means
this less demanding ratio fell to 17.6% from 19.8%. Once again, the IA Japan sector had the most consistently
above average funds with 32.3% achieving this feat. The next best was the IA Asia ex Japan sector with 29.2%
of funds qualifying. At the other end of the spectrum the IA UK Equity Income sector had the lowest percentage
of funds achieving rolling 12-month consistency for the three years at 10%. Notably, all sectors had a numberof funds achieving above average consistency.

What a difference a year makes
Comparing fund performance on a like-for-like basis at the same point in time last year shows a very
contrasting picture. Despite fund performance improving from the all-time low of Q3 2022, which recorded
three funds (0.26%)1 delivering consistent top quartile returns over the period, only six out of the 1,219 funds(0.5%) achieved top quartile returns over three years to the end of Q4 2022. The final quarter of 2022 saw 44of the 57 IA sectors make positive ground.
1 Record low is based on Fund Watch data, which has been recorded since 2008.

Kelly Prior, Investment Manager in the Multi-Manager team at Columbia Threadneedle Investments,
comments: “Consistency faltered in the fourth quarter as the mood music again took on a different tempo.
Having failed to respond to expectations of a change in rate outlook for much of the year, the final Federal
Reserve meeting of 2023 offered a more dovish tone. Japan proved to be something of an outlier in 2023. Amarket often forgotten due to its ever-decreasing importance in global indices, it continues to prove a richhunting ground for active management.
“As we peer into our tea leaves for inspiration for the year to come it strikes us that we may be nearing a time
to be brave. China, the standout underperformer this quarter, looks ripe for a change of sentiment while India ispriced for perfection, and if Private Equity needs to start deploying capital, then smaller companies are viewed
as a steal, particularly in the UK. High Yield has been fabulous but when floating rates start to bite there will bewinners and losers, and Emerging market central bankers have been ahead of the curve in hiking and thencutting interest rates while their developed market cousins sat on the sidelines. Indeed, a change in thefortunes of the ‘Magnificent 7’ stocks could result in a change in consistency outcomes for US Equities funds
too.
“With continued geo-political tensions and an election year for 60% of the world population likely to throwsignificant curve balls into the mix, investing in 2024 certainly isn’t going to be for the fainthearted!!”
Other highlights from Q4 2023 survey included:▪

There was a changing of the guard in the UK equity sectors with the UK Smaller Companies average
leading the move upwards in the quarter with a 6.8% gain. The IA UK All Companies sector returned arespectable 4.5%, while the IA UK Equity Income a close 4.3%. The returns for the year remain
significantly different however, with the IA Smaller companies average essentially flat while the IA UK All
companies gained 7.2%.

▪

There were no consistently top quartile North American funds and 9 of the 20 that were consistently aheadof average were trackers.

▪

Sensitivity to interest rates was a major factor in the fortunes of bond sector returns with the IA UK Index
Linked Gilt sector average gaining close to 10% in the quarter, though the 12-month return was a lessstunning at 0.4%.
ENDS

Notes to editors:

About Fund Watch
The Fund Watch survey uses the Columbia Threadneedle Investments Multi-Manager team’s process tohighlight the past quarter’s developments in the fund world. It is fact-based and uses performance analysis
techniques which form part of the team’s investment process. All data is from Lipper for Investment Association(IA) sectors and is calculated in total return terms in sterling for periods ending 31 December 2023.
The Columbia Threadneedle Investments Multi-Manager team has worked together since 1996 and runs two
fund ranges - CT MM Lifestyle, a range of five risk targeted funds, and CT MM Navigator a range of five risk
profiled funds, full details can be found online here.
CT MM Lifestyle
CT MM Lifestyle 3 FundCT MM Lifestyle 4 FundCT MM Lifestyle 5 FundCT MM Lifestyle 6 FundCT MM Lifestyle 7 FundCT MM Navigator Range
CT MM Navigator Balanced FundCT MM Navigator Boutiques FundCT MM Navigator Cautious FundCT MM Navigator Distribution FundCT MM Navigator Growth Fund

About Columbia Threadneedle Investments
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We have more than 2500 people including over 650 investment professionals based in North America, Europeand Asia3. We offer our clients a wide range of strategies across equities, fixed income and alternatives, aswell as specialist responsible investment capabilities and a comprehensive suite of solutions.
Columbia Threadneedle Investments is the global asset management group of Ameriprise Financial, Inc.
(NYSE:AMP), a leading US-based financial services provider. As part of Ameriprise, we are supported by alarge and well-capitalised diversified financial services firm.
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23Source: Ameriprise Financial Q3 2023 earnings release
As at 30 September 2023, Columbia Threadneedle Investments