2011 was a year full of surprises and challenges - unrest in the Middle East, including the deaths of Osama bin Laden and Muammar Gaddafi, Japan's violent earthquake, U.S. and European debt woes, political gridlock and more. While we may be glad to see 2011 behind us, looking ahead we have no expectations that markets are done climbing the wall of worry or that structural issues will dissipate any time soon.

Despite the challenges, we see pockets of strength - and as a result, attractive opportunities - both here and abroad. We hope to help you capitalize on these opportunities with the 2012 Perspectives book. This book showcases our strong research capabilities and experienced investment teams. It offers a diverse array of investment ideas based on five key themes we will continue exploring throughout the year:

- Investing in better balance sheets: Whether looking at a company or country, we believe the strength of its finances is a good indicator of which investments can survive and potentially thrive in a time of economic uncertainty.

- Income-oriented equities: Yield is scarce while the need for income is high. We continue to believe that companies with a track record of paying healthy dividends are better positioned to meet their obligations, provide income and invest in themselves despite trying economic conditions.

- Scarce growth: Not every investment today reflects the broader conditions. Some emerging economies, sectors of the developed markets and select companies with strong fundamentals have the potential to provide investors with growth opportunities.

- Short-term bonds: We see a demand for short-term investment solutions, which have historically shown minimal price volatility. These strategies are designed to provide much-needed income while staying focused on preserving capital and minimizing downside market and interest rate risk.

- Tax-exempt income: Despite dire and inaccurate predictions about state and local defaults, the municipal market continues to offer attractive investment opportunities and compelling after-tax yields.

Thomas Paine said, "These are the times that try men's souls." But no matter what the times, opportunity is always knocking.

To read more from our 2012 Perspectives: http://www.columbiamanagement.com/PDF/ColMgmt/WeeklyPerspective/2012Perspectives.pdf

Colin Moore is chief investment officer for Columbia Management Investment Advisers, LLC. As CIO, Mr. Moore ensures that a disciplined investment process is in place across all asset classes, including equity, fixed income, alternatives and cash. He is responsible for the oversight of $325 billion in assets under management. Columbia Management is the seventh largest long-term asset manager in the U.S.

Mr. Moore publishes Perspectives, a weekly compilation of market commentaries from portfolio managers and other senior investment professionals at Columbia Management. Mr. Moore's market viewpoints are widely followed by financial advisors, individual investors and financial journalists globally. He is frequently quoted by prominent media outlets such as The Associated Press, Reuters and USA Today.

Mr. Moore joined Columbia Management in 2002 as head of equity and has been a member of the investment community since 1983. He attended the London Business School where he completed the Investment Management Program, and he is an associate by examination of the Institute of Investment Management and Research.


Important Disclosures:

The views expressed are as of January 1, 2012, 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, will not necessarily reflect the views expressed.

This information is not intended to provide investment advice and does not account for 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 the forecasts are accurate.