Regions Financial Corporation · NYSE:RF
Regions Financial — Investor Presentation (2021)
13 slides from Regions Financial's investor presentation, 2021
Slide 1: Regions Asset Management Capital Market Expectations 2021
Regions Asset Management Capital Market Expectations 2021
Slide 2: 2021 Capital Market Expectations Summary
2021 Capital Market Expectations Summary Asset prices were resilient in 2020, and in many cases far exceeded Regions Asset Management ten-year asset class return expectations, our annualized return expectations over the next 7-10 years December 2020 published at the end of 2019. Alongside ultra-easy
Slide 3: Revisiting Last Year’s Themes
Revisiting Last Year’s Themes 1. Global central banks appear poised to remain Theme Reaffirmed: Central bank balance sheets expanded further accommodative for some time to come, which will in 2020 as the COVID-19 pandemic forced economic shutdowns, bolster liquidity, while dampening volatility and p
Slide 4: New Themes To Monitor In 2021
New Themes To Monitor In 2021 1. Growth Tailwinds Shifting In Value’s Favor. The past decade has been the best of times for investors in growth stocks since the late 1990’s, as the Russell 1000 Growth index is up 480% over that time frame, blowing the Russell 1000 Value index’s 275% return out of th
Slide 5: Theme 1: Growth Tailwinds Shifting In Value’s Favor
Theme 1: Growth Tailwinds Shifting In Value’s Favor Rough 10-Year Stretch Vs. Growth, But Tailwinds Shifting In Value’s Favor The Russell 1000 Growth index has now outperformed the Russell 1000 Value index in eight calendar years out of the past decade. A combination of ultra-low interest rates, slo
Slide 6: Theme 2: Small/Mid To Outpace Large With ‘Real’ Yields, Credit Supportive
Theme 2: Small/Mid To Outpace Large With ‘Real’ Yields, Credit Supportive Perfect Storm, In A Good Way: Russell 2000/S&P Mid Cap 400 Both Skew Toward Cyclical, Value Sectors Russell 2000 Weight S&P Mid Cap 400 Weight S&P 500 Weight Communication Services 2.38 1.77 10.95 Historically, smaller capital
Slide 7: Theme 3: Hand-Off From Earnings Multiple Expansion To Earnings Growth Necessary
Theme 3: Hand-Off From Earnings Multiple Expansion To Earnings Growth Necessary S&P 500 Forward P/E Multiple (Green Line) Elevated, As Usual, Post-Recession; Areas Highlighted In Red Indicate Recessionary Periods 2020 was a year characterized by earnings multiple expansion for stocks as the S&P 500
Slide 8: Theme 4: Drawdowns And Price Discovery To Remain Muted Across Corporate Credit
Theme 4: Drawdowns And Price Discovery To Remain Muted Across Corporate Credit Historically Low Yields For Investment Grade and High Yield Corporates Bloomberg Barclays US High Yield - Corporate - YTW Treasury Secretary Steven Mnuchin threw credit 25 Bloomberg Barclays US Corporate Investment Grade
Slide 9: How The ‘Consensus’ Fared In 2020
How The ‘Consensus’ Fared In 2020 Last year we highlighted two ‘consensus calls’ we identified leading up to the start of 2020. The consensus batted .500 on last years’ calls. • In the Barron’s 2020 Outlook released mid-December 2019, 10 Wall Street strategists were interviewed. Just 3 of the 10 exp
Slide 10: Revisiting Prior Assumptions: 5-Year Lookback
Revisiting Prior Assumptions: 5-Year Lookback 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 2015 under the microscope to see how our assumptions have fared half-way
Slide 11: Conclusion: Annualized Return Assumption
Conclusion Despite the economic uncertainty and volatility created by the COVID-19 pandemic, asset prices and investor sentiment proved incredibly resilient over the balance of 2020, and there are reasons to believe 10 Year Return Forecasts brighter days are ahead for the global economy and higher p
Slide 12: Appendix: Asset Class Statistics (Simulated)
Appendix 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 7.7 6.4 16.1 24.1 Taxable FI 2.3 2.2 3.7 5.7 Tax Exempt FI 2.2 2.2 3.7 5.8 Correlations DS Equity Taxable FI Tax Exempt FI DS 1 0.71 0.04 0.14 Equity
Slide 13: Important Disclosure
Important Disclosure This proposal is intended for the sole use of the prospective client herein named and is not to be distributed to any other party. The proposal is intended to provide the client general information about Regions Institutional Services. The proposal response is not intended to pr