Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (2023)
14 slides from Regions Financial's investor presentation, May 20, 2023
Slide 1: Capital Market Expectations (CME's) 2023
Capital Market Expectations (CME’s) 2023 Powered By Multi-Asset Solutions (MAS) Internal Use Regions Asset Management 1
Slide 2: 2023 Capital Market Expectations Summary
2023 Capital Market Expectations Summary Expected Returns Increased Across The Board Year Over Year Looking Back: 2022 was challenging for all asset classes as central banks tightened monetary policy at an aggressive pace due to persistently stubborn inflationary pressures into the teeth of a slowin
Slide 3: Revisiting 2022's Themes
Revisiting 2022’s Themes 1. Global Central Banks Shift Further Away From Accommodative 1) Reaffirmed: While the bulk of monetary policy tightening in the U.S. and abroad Pandemic-Era Policies is in the rearview mirror, the Federal Open Market Committee (FOMC) has voiced • The Fed (FOMC) learned from
Slide 4: Revisiting 2022's Themes – In Charts
Revisiting 2022’s Themes – In Charts 1) Short-Term Interest Rates On The Rise Globally, Negatively Impacting Equity Valuations At that start of 2022, many forecasted interest rates to rise but few fathomed the magnitude and speed at which global central banks sought to extract liquidity from financi
Slide 5: Revisiting 2022's Themes – In Charts
Revisiting 2022’s Themes – In Charts 3) Modest Inflows Into Alternatives In ’22, But Investors Remain Allocated Despite Best Relative Return Since 2000 Year Alternative Mutual Fund Flows (B) HFRX Excess Return over Balanced Portfolio 2022 26 11.82 2021 39.3 -9.92 Liquid alternative funds had another
Slide 6: New Themes To Monitor For '23, And Beyond
New Themes To Monitor For ‘23, And Beyond 1. A Bounce Back Year Ahead For The “Balanced Portfolio,” But With Bonds Doing The Heavy Lifting • The ‘Balanced Portfolio,’ whether it be a traditional 60/40 or 50/50 stock/bond portfolio, turned out its worst calendar year performance since 2008. However,
Slide 7: Theme 1: A Bounce Back Year For The "Balanced Portfolio"
Theme 1: A Bounce Back Year For The “Balanced Portfolio” Historically, The “Balanced Portfolio” Bounces Back Quickly, And After experiencing its worst drawdown since 2008 last year, the “balanced portfolio,” either a 50/50 or 60/40 stock/bond portfolio, should bounce back in Sharply, After A Down Ye
Slide 8: Theme 2: Higher Short-Term Yields A Boon For Investors In Bonds And Select Alternatives
Theme 2: Higher Short-Term Yields A Boon For Investors In Bonds And Select Alternatives Elevated and ‘stickier’ than anticipated inflation led to a more aggressive pace Fixed Income Yields Now Most Attractive In Over A Decade, of monetary policy tightening than many, including us, anticipated, and s
Slide 9: Theme 3: Real Assets To Deliver Tangible Diversification Benefits
Theme 3: Real Assets To Deliver Tangible Diversification Benefits Exposure to real assets should prove beneficial for portfolios Historical Performance Of Stocks, Bonds, And Select “Real Assets” in the coming year as investors place a premium on earnings In Different Inflation Regimes stability and
Slide 10: Revisiting Prior Assumptions: 5-Year Lookback (2018-2022)
Revisiting Prior Assumptions: 5-Year Lookback (2018-2022) What a difference a year can make! When we went through this exercise at the end of 2021, our return assumptions, broadly speaking, appeared far too conservative, but after a steep drawdown across asset classes last year and with 2017, a stro
Slide 11: Building Blocks Of CMEs
Building Blocks Of CMEs Equity Fixed Income Equity capital market expectations are derived from established fundamental Formulating capital market return expectations for fixed income is a simpler drivers of return including income estimates and capital appreciation forecasts. exercise with fewer va
Slide 12: Conclusion: Annualized Return Assumption
Conclusion 2022 brought with it a painful repricing of risky and less risky assets alike, but after a valuation reset investors are now presented with a more attractive opportunity set 10 Year Return Forecast across which to allocate capital. We ratcheted upward our annualized return 10% expectation
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