Month: April 2023

Developed markets continued their strong run relative to domestic, with most major regions’ performance ahead of the U.S. market in April. European markets, in particular, built on momentum since late last year.

Economies worldwide have proved resilient in the face of stubbornly high inflation and monetary tightening, and equities were rewarded with strong returns in the first quarter of 2023. Heightened concern over banks’ stability held back the financial sector, but elsewhere the rebound begun in the fourth quarter of 2022 remained in full swing. Europe’s momentum continued, backed by exports to a re-opening China and ever-cheaper energy; the Eurozone is increasing in the strategy’s model rankings and positioning. Despite Information Technology’s preponderance in the US and market leadership for the quarter, overseas markets kept pace, supported by modest strength in currencies such as the euro and pound, and company fundamentals within sectors. We believe that this latter source of strength—resiliency of earnings and convergence of multiples towards levels seen in US peers—will prove a long-term tailwind for international equities’ performance.

The Bailard Technology & Science Composite (the “Composite”) posted a Q1 total return of 21.62%, net of fees, meaningfully ahead of the competitor-related benchmarks, with the Morningstar U.S. Open End Technology Category return of 17.48% and the Lipper Science and Technology Fund Index return of 17.88%. The Composite was also ahead of the top-heavy S&P North American Technology Index return of 21.45% and the mega-cap Nasdaq 100 return of 20.77%. Over longer measurement periods of 3, 5, and 10 years, the Composite’s net returns continue to lead the competitor’s peer group benchmarks.