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The PSN Universes Have Spoken - Q4 2021 Top Guns Unveiled
It's been nearly four decades since Zephyr’s PSN introduced the first-of-its-kind SMA database. It opened up tremendous opportunities for asset managers to present their strategies to a wider audience of potential investors. Our quarterly PSN Top Guns features product rankings via predefined peer universes using increasingly rigorous screens and reported in ascending classes from 1-6 stars. This quarter, we are proud to announce our annual PSN Top Guns Manager of the Decade awards. Register to view the full Q4 2021 list by clicking the button below.  PSN data is available on Zephyr  well as customizable feeds. Contact a Zephyr Sales Consultant to learn more.
Q4 2021 PSN Top Guns – U.S. Equities Cap the Year Off on a Strong Note

U.S. equities, measured by the S&P 500 index, ended 2021 on strong note with a +11.03% total return during the fourth quarter and a +28.71% total return for the calendar year. Despite the strong performance the quarter wasn’t all bells and whistles. The Federal Reserve (Fed) took its first steps to removing accommodative monetary policies, while the global surge in the omicron variant slowed market gains in late-November. Fixed income (Bloomberg U.S. Aggregate +0.01%) felt pressure due to the looming tighter policies and realization that higher inflation may be more persistent than originally thought. Meanwhile, global equities (MSCI World Index +7.86%) had a strong quarter as investors focused on the economic recovery and solid corporate earnings.

U.S. equity gains paused in late-November regarding concerns about the surge in the omicron variant, the pace of the Fed’s asset tapering and the growing likelihood that interest rate hikes will begin sooner-than-expected. However, stable economic growth and robust corporate earnings offset the concerns by quarter end to provide a boost for equities. While managers with a large cap mandate (Russell 1000 index +9.78%) outperformed small cap managers (Russell 2000 index +2.14%), midcap value managers had a very strong quarter as well (Russell Midcap Value +8.54%). Below are some of the strategies that make up the PSN Top Mid Value Universe.

·       Thomas White International, Ltd.: Mid Cap Value Equity (+12.9% for the quarter)
·       WCM Investment Management: Focused SMID Cap (+12.5% for the quarter)
·       Chartwell Investment Partners: Mid Cap Value (+12.2% for the quarter)
Similar to domestic equities, foreign equity markets had to wrestle with the uncertainties over the infectious omicron variant as some countries placed restrictions on some sectors such as travel and hospitability to try and slow the spread. However, the MSCI EAFE index was able to finish the quarter with a +2.74% return as the resilient global economy and corporate earnings offset concerns over the infectious disease. European shares, represented by the MSCI Europe index, posted a solid +5.72% total return as investors believed the pace of monetary tightening by the ECB would be gradual. The following strategies made the PSN Top Guns list for the Europe Universe.

·       BlackRock: European Equity – Value (+13.0% for the quarter)
·       Comgest Asset Management Intl LTD.: Pan Europe Equity (+10.8% for the quarter)
·       Columbia Threadneedle Inv EMEA APAC: Pan Europe Equity (+7.5% for the quarter)

The Fed’s tone turned increasingly hawkish during the quarter as the central bank acknowledged that high inflation might not be as temporary as it initially thought and removed the term “transitory” from its statements. The 10-year Treasury yield was little changed from the beginning of the quarter (1.49%) to the end of the quarter (1.51%), however the period in between was a rollercoaster. Higher inflation and anticipated tighter monetary policies pushed yields to as high as 1.7%, while concerns over the omicron variant pushed yields down to as low as 1.36% in December. Long maturity government bonds (Bloomberg U.S. Long Government/Credit index +2.15%) benefited from the omicron uncertainty while fixed income products that incorporated inflation protection also rose. Below are some of the strategies that make up the PSN Top Guns Long Maturity Universe.

·       Fidelity Institutional Asset Mgmt.: Long U.S. Treasury STRIPS Index (+6.0% for the quarter)
·       State Street Global Advisors: 20+ Year U.S. Treasury STRIPS Index (+5.5% for the quarter)
·       Jennison Associates LLC: Jenn Long Conservative US Tsy STRIPS (+5.4% for the quarter)

 
For more details on the methodology behind the PSN Top Guns Rankings, or to purchase PSN Top Guns Reports, contact Margaret Tobiasen at Margaret.tobiasen@informa.com.
Ryan Nauman serves as Zephyr’s top Market Strategist, original content developer and champion of all things data related for the investment management industry. Known for his innovative thinking and extensive knowledge of the wealth management ispace, Ryan has become a powerful contributor and influencer in the industry with guest appearances and interviews in Reuters, CNBC, Bloomberg, MarketWatch.com, Yahoo! Finance, the Wall Street Journal, TD Ameritrade Network, Yahoo! Finance, Bloomberg TV, Bloomberg Radio and Chuck Jaffe’s Money Life podcast. Ryan’s more than 20 years in the industry has included key roles at US Bancorp Piper Jaffray, UBS Financial Services, RBC Wealth Management and Ameriprise serving in product development, client services and investment management before joining Informa’s Zephyr Division. His diverse background and experience in client to investor engagement has earned him a respected reputation for providing actionable insights across multiple paths to enhance communication, retention and acquisition. He earned a bachelor’s degree from St. Cloud State University in computer information sciences. Contact: Ryan.Nauman@Informa.com (800) 789-5323
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