Currency Risk in Emerging Markets

Sponsored by Columbia Threadneedle.

There’s a general misconception that currency creates a great deal of risk in emerging markets. However, the data suggests that currency risk is actually prevalent in all markets outside of the U.S., not just emerging ones. As with other types of risk, there may also be opportunity for reward. So, should investors avoid currency risk or can it actually help? Watch Ed Kerschner discuss the pros and cons of currency risk in emerging markets.

_{The views expressed are as of October 2016, may change as market or other conditions change and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate.}

_{International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different financial and accounting standards. Risks are enhanced for emerging market issuers. Investment in or exposure to foreign currencies subjects a fund to currency fluctuation and additional risk of loss.}

_{“If you look at the data… a little about one third of one percentage point.” Source: Bloomberg, as of 9/30/2016. Returns represented by MSCI Emerging Markets Index (Local) and MSCI Emerging Markets (USD). Past performance does not guarantee future results.}

_{MSCI Emerging Markets (EM) Index is designed to measure the equity market performance in global emerging markets.}

_{It is not possible to invest directly in an index.}

_{Securities products offered through Columbia Management Investment Distributors, Inc., member FINRA. Advisory services provided by Columbia Management Investment Advisers, LLC.}

_{Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.}

_{©2016 Columbia Management Investment Advisers, LLC. All rights reserved.}

_1637810