Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (2022)
14 slides from Regions Financial's investor presentation, Feb 18, 2022
Slide 1: Capital Market Expectations (CME's) 2022
Capital Market Expectations (CME’s) 2022 Internal Use Regions Asset Management 1
Slide 2: 2022 Capital Market Expectations Summary
2022 Capital Market Expectations Summary Looking Back: The S&P 500 led the charge in 2021 with a 28.7% total return – Regions Asset Management ten-year asset class return expectations, nearly 5X our 6% annual return expectation over the coming decade published at the end of last year. The Russell 25
Slide 3: Revisiting Themes For 2021
Revisiting Themes For 2021 1. Growth Tailwinds Shifting In Value’s Favor. The past decade has 1) Theme Reaffirmed: We maintain a favorable outlook on cyclical value stocks been the best of times for investors in growth stocks since the late given our expectation that commodity prices will remain ele
Slide 4: Themes To Monitor In 2022, And Potentially Beyond
Themes To Monitor In 2022, And Potentially Beyond 1. Global Central Banks Shift Further Away From Accommodative Pandemic-Era Policies • The Fed (FOMC) learned from its mistakes in 2013 that led to the Taper Tantrum and has done an admirable job of communicating and telegraphing policy shifts. It wil
Slide 5: Theme 1: Global Central Banks Shift Further Away From Accommodative Pandemic-Era Policies
Theme 1: Global Central Banks Shift Further Away From Accommodative Pandemic-Era Policies In the wake of the 2008-09 Global Financial Crisis, central banks Fed’s Balance Sheet Has Ballooned, Boosting Risk Asset Prices And Propelling have been quick to pivot toward ‘easy’ monetary policies, The S&P 5
Slide 6: Theme 1: Global Central Banks Shift Further Away From Accommodative Pandemic-Era Policies
Theme 1: Global Central Banks Shift Further Away From Accommodative Pandemic-Era Policies The Eurozone economy continues to be one of the most negatively Actual Inflation Vs. Inflation Targets Across The Globe impacted by the emergence of new COVID-19 variants, with countries there quick to implemen
Slide 7: Theme 2: U.S. Investors In Search Of Relative Value, Yield Increasingly Look Abroad
Theme 2: U.S. Investors In Search Of Relative Value, Yield Increasingly Look Abroad International markets have consistently underperformed U.S. Europe, Japan Skew Economically Sensitive; U.S. Tilts Toward Growth equity indices for over a decade now, but markets abroad could play catch-up in the comi
Slide 8: Theme 3: Alternative Investments To Garner Increased Interest, Investor Capital
Theme 3: Alternative Investments To Garner Increased Interest, Investor Capital Liquid alternative mutual funds took in $27B of net flows in 2021, the highest Liquid Alts Garnered Inflows In ’21, A Trend We Expect To Persist amount since 2013 ($12B) but flows into liquid alternatives were still Alte
Slide 9: Theme 4: Brighter Days Ahead For Active Managers As A Focus On 'Quality' Is Rewarded
Theme 4: Brighter Days Ahead For Active Managers As A Focus On ‘Quality’ Is Rewarded U.S. equity indices experienced an ‘everything rally’ off the March 2020 Factor Leadership Since March 2020 Vs. Factor Leadership In lows but we expect a more discerning view to be rewarded in the coming Prior Rate
Slide 10: Revisiting Prior Assumptions: 5-Year Lookback (2017-2021)
Revisiting Prior Assumptions: 5-Year Lookback (2017-2021) Accountability and learning from one’s mistakes, no matter how humbling or painful, is crucial in investing. As such, we put our capital market expectations published at the end of 2016 under the microscope to see how our assumptions have far
Slide 11: The ABC's Of CME's
The ABC’s Of CME’s We’re often asked why our capital market expectations don’t change much from one year to the next, despite what might have been outsized returns over the prior year(s). From a broader asset class perspective, the past has little role to play when attempting to formulate future exp
Slide 12: Conclusion
Conclusion Perhaps surprisingly, given what has been a stellar five-year run for global equities, our 7 to 10-year return assumptions for stocks remained largely unchanged year over year, with 10 Year Return Forecasts a modest downgrade to emerging market equities the notable exception. While our re
Slide 13: Appendix/Important Disclosure
Appendix/Important Disclosure Asset Class Statistics (Simulated) Asset Classes Arithmetic Mean Geometric Mean Standard Deviation CVaR Cutoff 5.0% DS 4.4 4.2 6.1 8.4 Equity 7.8 6.5 16.1 24.0 Taxable FI 2.0 2.0 3.7 5.9 Tax Exempt FI 2.2 2.1 3.7 5.8 Correlations DS Equity Taxable FI Tax Exempt FI DS 1
Slide 14: Important Disclosure Continued
Important Disclosure Continued The simulated results contained in this presentation are hypothetical, and are based on forward-looking capital markets assumptions for estimated returns, standard deviation, and correlations. Hypothetical results do not involve market risk, and are achieved with the b