Country Indices Flash Report – March 2024
Inflation continued to moderate across most major markets: the Fed’s preferred Core PCE reading cooled to 2.8% year over year, while British CPI fell to 3.4%, the Eurozone to 2.6%, and Switzerland to just 1.2%.
Three Bailard Equity Strategies Attain PSN Top Guns List Status
San Francisco, CA – March 26, 2024 – Bailard is thrilled to announce its inclusion in the PSN Top Guns List for top performance in separate accounts, managed accounts, and managed ETF strategies for the fourth quarter of 2023. This recognition, presented by Zephyr, highlights the achievements of product offerings within the PSN peer reporting framework.
“This accolade serves not just as a ranking, but an acknowledgement of our asset management team’s relentless strategic emphasis on innovation, paired with a consistent pursuit of excellence,” said Bailard’s CEO, Sonya Mughal, CFA. “Bailard’s firm stance on excellence and the creation of value amidst the dynamic market environment is unwavering.”
Through a combination of PSN’s proprietary performance screens, the PSN Top Guns list ranks products in six proprietary categories in over 75 universes based on continued performance over time. The rankings were announced February 2024. There was no fee to enter.
Bailard’s Micro Cap Value, Technology, and Technology & Science strategies achieved notable rankings on the list.
Micro Cap Value Strategy:
- Micro Cap Universe (57 products): Top Gun, Manager of the Decade Rating, Bull/Bear Masters, and 1, 3, and 4 Stars.
- US Equity Socially Responsible Universe (153 products): Top Gun, 1, and 3 Stars.
Bailard Technology Strategy:
- All Cap Growth Universe (81 products): Top Gun, 1, 2, and 3 Stars.
- All Cap Universe (399 products): Top Gun, 1, and 2 Stars.
- US Equity Universe (2,659 products): Top Gun, 2 Stars.
- US Growth Universe (648 products): Top Gun, 1, and 2 Stars.
Bailard Technology & Science:
- All Cap Growth Universe (81 products): Top Gun, 1, and 2 Stars.
- All Cap Universe (399 products): Top Gun, 1, and 2 Stars.
- US Equity Universe (2,659 products): Top Gun, 2 Stars.
- US Growth Universe (648 products): Top Gun, 1, and 2 Stars.
Below is a description of each ranking, based on gross of fee returns. The deduction of fees and expenses could have affected performance ratings.
- Top Gun One Star Rating means the strategy had one of the top ten returns for the quarter in their respective strategy.
- Top Gun Two Star Rating means the strategy had one of the top ten returns for the one-year period in their respective strategy.
- Top Gun Three Star Rating means the strategy had one of the top ten returns for the three-year period in their respective strategy.
- Top Gun Four Star Rating means the strategy had an r-squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Moreover, the strategy’s returns exceeded the style benchmark for the three latest three- year rolling periods. The top ten returns for the latest three-year period then become the 4 Star Top Guns.
- Top Gun Manager of the Decade Rating means the strategy had an r-squared of 0.80 or greater relative to the style benchmark for the latest 10-year period. Moreover, the strategy’s returns were greater than the style benchmark for the latest 10-year period and also standard deviation less than the style benchmark for the latest ten-year period. At this point, the top ten performers for the latest 10-year period become the PSN Top Guns Manager of the Decade.
- Top Gun Bull & Bear Masters means the strategy had an r-squared of 0.80 or greater relative to the style benchmark for a three- year period. Moreover, the strategy had an upside market capture over 100 and a downside market capture less than 100 relative to the style benchmark. The top ten ratios of Upside Capture Ratio over Downside Capture Ratio become the PSN Bull & Bear Masters.
Past performance does not guarantee future results. All investments involve the risk of loss.
To learn more about our equity strategies, please visit https://bailard.com/equity-strategies/.
The complete list of PSN Top Guns and an overview of the methodology can be found at https://psn.fi.informais.com/. Registration is required.
About Bailard, Inc.
Founded in 1969, Bailard is an independent asset and wealth management firm serving individuals, families, and institutions alike. Bailard has built a long‐term asset management track record across domestic and international equities, fixed income, and private real estate, as well as robust, in-house sustainable, responsible, and impact investing expertise. We combine these investment capabilities with financial, tax, and estate planning to provide comprehensive wealth management. Through it all, Bailard works with clients to align their financial goals with their values. Based in the San Francisco Bay Area with $5.8 billion in assets under management as of 12/31/2023, Bailard is a majority employee-owned and women-led firm, a Certified B Corporation™, and a Principles of Responsible Investing signatory.
Important Disclosures and Key Risks
Bailard Micro Cap Value Strategy Key Risks: The Bailard Micro Cap Value Strategy is not by itself a complete investment program and is best suited for investors who can accept the above average risk generally associated with micro cap stocks. These companies may face greater economic cycle risk, credit risk, geographic risk, product, and customer concentration risk than that faced by larger companies. Micro cap stocks are more volatile and less liquid than larger cap stocks and may be more difficult to trade. There are times when the micro cap value equity style underperforms other equity investment styles.
The application of various environmental, social and governance screens as part of a socially responsible investment strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in higher or lower returns than a similar investment strategy without such screens or other strategies that use a different methodology to exclude issuers or evaluate ESG criteria. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor.
In evaluating a security or issuer based on ESG criteria, we are dependent upon certain information and data from third party providers of ESG research, which may be incomplete, inaccurate or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. There is also a risk that we may not apply the relevant ESG criteria correctly or that the strategy could have indirect exposure to issuers that do not meet the relevant ESG criteria used by the strategy. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such ESG assessment. There may be limitations with respect to availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
The market value of an investment will fluctuate as the securities markets fluctuate. There can be no assurance that this or any investment strategy will achieve its investment objectives. All investments have the risk of loss.
Bailard Technology Strategy Key Risks: The Bailard Technology Composite is not by itself a complete investment program and is best suited for investors who can accept the above average risk generally associated with growth stocks and technology stocks. The strategy is primarily subject to the risk that the market value of investments will fluctuate as stock markets fluctuate plus the style and sector risks associated with a complete weighting in the technology sector, which may be more volatile than the overall stock market. The strategy is also subject to the size risks associated with investments in smaller market cap stocks in addition to its predominant tilt toward large cap stocks. The strategy may invest in American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) which are subject to the same risks as the foreign securities that they evidence or into which they may be converted (including political or economic instability, the impact of currency rate fluctuations and different accounting standards). The strategy may invest in derivative securities, which may be volatile and may increase investment leverage.
The application of various environmental, social, and governance screens as part of a socially responsible investment strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in lower returns than a similar investment strategy without such screens or other strategies that use a different methodology to exclude issuers or evaluate ESG criteria. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor.
Adherence with strategy’s ESG criteria is determined at the date of purchase. Individual equity holdings in the strategy may cease to meet the relevant ESG criteria after the initial purchase but may nevertheless remain in the strategy until a future review or rebalance by the Bailard. As a result, certain securities in the strategy or the client’s portfolio as a whole, may not meet the relevant ESG criteria at all times.
In evaluating a security or issuer based on ESG criteria, we are dependent upon certain information and data from third party providers of ESG research, which may be incomplete, inaccurate or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. There is also a risk that we may not apply the relevant ESG criteria correctly or that the strategy could have indirect exposure to issuers that do not meet the relevant ESG criteria used by the strategy. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such ESG assessment. There may be limitations with respect to availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
There can be no assurance that Bailard will achieve its investment objectives. All investments have the risk of loss.
Technology & Science Strategy Key Risks: The Bailard Technology & Science Composite (“the Composite”) includes a Bailard portfolio primarily invested in U.S. equities with growth characteristics and large capitalizations with a bias toward technology-focused sectors. The Technology and Science Strategy is not by itself a complete investment program and is best suited for investors who can accept the above average risk generally associated with growth stocks, technology stocks and health care stocks (including emerging life sciences stocks). The strategy is primarily subject to the risk that the market value of investments will fluctuate as stock markets fluctuate, and the style and sector risks associated with a heavy weighting in the technology and health care sectors, which may be more volatile than the overall stock market. The strategy may invest in American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) which are subject to the same risks as the foreign securities that they evidence or into which they may be converted (including political or economic instability, the impact of currency rate fluctuations and different accounting standards).
The application of various environmental, social, and governance screens as part of a socially responsible investment strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in lower returns than a similar investment strategy without such screens or other strategies that use a different methodology to exclude issuers or evaluate ESG criteria. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor.
Adherence with strategy’s ESG criteria is determined at the date of purchase. Individual equity holdings in the strategy may cease to meet the relevant ESG criteria after the initial purchase but may nevertheless remain in the strategy until a future review or rebalance by the Bailard. As a result, certain securities in the strategy or the client’s portfolio as a whole, may not meet the relevant ESG criteria at all times.
In evaluating a security or issuer based on ESG criteria, we are dependent upon certain information and data from third party providers of ESG research, which may be incomplete, inaccurate or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. There is also a risk that we may not apply the relevant ESG criteria correctly or that the strategy could have indirect exposure to issuers that do not meet the relevant ESG criteria used by the strategy. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such ESG assessment. There may be limitations with respect to availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
There can be no assurance that Bailard will achieve its investment objectives. All investments have the risk of loss.
Additional Disclosures: This piece does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting or other material considerations. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact Bailard or consult with the professional advisor of their choosing.
About PSN
For nearly four decades, PSN has been a top resource for investment professionals. Asset managers rely on Zephyr’s PSN to effectively reach institutional and retail investors. Over 2,800 firms, 285 universes, and more than 21,000 products comprise the PSN SMA database showing asset breakdowns, compliance, key personnel, ownership diversity, ESG, business objectives and strategy, style, fees, GIC sectors, fixed income ranges and full holdings. Unique to PSN is its robust historical database of nearly 40 Years of Data Including Net and Gross-of-Fee Returns. For more details on the methodology behind the PSN Top Guns Rankings or to purchase PSN Top Guns Reports, contact Robby Resendez at PSNdata@informais.com. There was no fee to enter. Visit PSN online to learn more.
Interested in Learning More about the Technology Strategy, or Meeting with the Technology Strategy Team?
Interested in Learning More about the Technology Strategy, or Meeting with the Technology Strategy Team?Diana L. Dessonville
Executive Vice President | Director, Institutional Client Services
diana.dessonville@bailard.com
(650) 571-5800
Technology Strategy Named as Top-Performing Equity Managers
The Strategy was a top performer in Morningstar’s Overall U.S. Separate Accounts Category over 1-year period, and Morningstar’s Technology Category over 1- and 5-year periods ending December 31, 2023
San Francisco – March 21, 2024 – Bailard’s Technology Strategy was among Pensions & Investments’ top-ten performing equity managers in Morningstar’s Overall U.S. Equity Separate Accounts Category for the 1-year period ending December 31, 2023. The Technology Strategy was also a top performer in the Morningstar Technology Category for separate accounts, for both the 1-year and 5-year periods ending December 31, 2023.
The rankings, compiled based on data from Morningstar, were unveiled earlier this month by Pensions & Investments, the global news source of money management and institutional investing in “Growth technology stocks vault to top equity strategies for 2023” and “Top performing managers by category: separate accounts, 4th Quarter 2023.” The top performers are selected based on 1-year and 5-year returns (calculated using the monthly returns input to Morningstar).
The Bailard Technology Strategy placed 8th in the Overall U.S. Equity Separate Accounts Category and 4th in the Technology Category, both for the 1-year period ending December 31, 2023, with a 69.16% gross of fee return and a 68.49% net of fee return. The Strategy placed 3rd in the Technology Category for the 5-year period ending December 31, 2023, with a 22.57% gross of fee return and a 22.08% net of fee return. (For the 10-year period, the Strategy returned 18.28% gross of fee and 17.45% net of fee.)
“Thematically, the Bailard Technology strategy portfolio benefited from our positioning around the emergence of generative artificial intelligence, which ignited secular growth opportunities for many technology companies that we believe are broad and sustainable,” Dave Harrison Smith, CFA, Bailard’s Executive Vice President of Domestic Equities and Head of Technology Investing, told Pensions & Investments. Dave continued, “Similarly, we benefited from an emphasis on the cybersecurity industry and a recovery in fundamentals in key segments including ad-tech and software.”
To learn more about our Technology Strategy and Bailard’s other equity strategies, please visit https://bailard.com/equity-strategies/.
Interested in Learning More about the Technology Strategy, or Meeting with the Technology Strategy Team?
Diana L. Dessonville
Executive Vice President | Director, Institutional Client Services
diana.dessonville@bailard.com
(650) 571-5800
About Bailard, Inc.
Founded in 1969, Bailard is an independent asset and wealth management firm serving individuals, families, and institutions alike. Bailard has built a long‐term asset management track record across domestic and international equities, fixed income, and private real estate, as well as robust, in-house sustainable, responsible, and impact investing expertise. We combine these investment capabilities with financial, tax, and estate planning to provide comprehensive wealth management. Through it all, Bailard works with clients to align their financial goals with their values. Based in the San Francisco Bay Area with $5.8 billion in assets under management as of 12/31/2023, Bailard is a majority employee-owned and women-led firm, a Certified B Corporation™, and a Principles of Responsible Investing signatory.
Important Disclosures
The Technology Category lists were compiled through the Morningstar Separate Account/CIT Fund Database, as of the fourth quarter of 2023, based on data populated as of March 4, 2024. The data for the separate account and CIT rankings was pulled February 21, 2024. A total of 3,526 strategies existed in the overall U.S. equity universe. It is estimated that a total of 42 strategies appeared in the Technology Category for the 1-year period ending December 31, 2023. It is unknown the number of strategies that appeared in the Technology Category for the 5-year period ending December 31, 2023. There was no fee to be considered for these recognitions.
Past performance is no indication of future results. All investments involve a risk of loss.
Risks: The Bailard Technology Composite is not by itself a complete investment program and is best suited for investors who can accept the above average risk generally associated with growth stocks and technology stocks. The strategy is primarily subject to the risk that the market value of investments will fluctuate as stock markets fluctuate plus the style and sector risks associated with a complete weighting in the technology sector, which may be more volatile than the overall stock market. The strategy is also subject to the size risks associated with investments in smaller market cap stocks in addition to its predominant tilt toward large cap stocks. The strategy may invest in American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) which are subject to the same risks as the foreign securities that they evidence or into which they may be converted (including political or economic instability, the impact of currency rate fluctuations and different accounting standards). The strategy may invest in derivative securities, which may be volatile and may increase investment leverage.
The application of various environmental, social, and governance screens as part of a socially responsible investment strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in lower returns than a similar investment strategy without such screens or other strategies that use a different methodology to exclude issuers or evaluate ESG criteria. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor.
Adherence with strategy’s ESG criteria is determined at the date of purchase. Individual equity holdings in the strategy may cease to meet the relevant ESG criteria after the initial purchase but may nevertheless remain in the strategy until a future review or rebalance by the Bailard. As a result, certain securities in the strategy or the client’s portfolio as a whole, may not meet the relevant ESG criteria at all times.
In evaluating a security or issuer based on ESG criteria, we are dependent upon certain information and data from third party providers of ESG research, which may be incomplete, inaccurate or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. There is also a risk that we may not apply the relevant ESG criteria correctly or that the strategy could have indirect exposure to issuers that do not meet the relevant ESG criteria used by the strategy. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of such ESG assessment. There may be limitations with respect to availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
There can be no assurance that this or any investment strategy will achieve its investment objectives. All investments have the risk of loss.
Performance Disclosures
Composite Definition:
The Technology Composite (“the Composite”) includes all portfolios invested primarily in the stocks of firms that predominately use technology to drive their business. The Technology Composite is a carve-out (the “Carve-Out”) from a composite (the Bailard Inc. Technology & Science Composite) that was managed to the firm’s all cap growth / technology and science equity strategy. The Carve Out’s portfolio consists of all holdings in the Technology & Science Composite after filtering out health care stocks as defined by GICS. Through June 2016, cash was allocated to the Carve-Out based on the relative value of its holdings within the Technology & Science Composite. Since July 2016 the Carve-Out has been managed as a sub-portfolio with its own cash. As of December 31, 2023, the Composite from which the Carve-Out was drawn consisted of a single mutual fund portfolio, which has been managed in an advisory or subadvisory capacity since 2001. The Composite had a market value of $150.6M as of December 31, 2023. The Composite’s returns are total returns presented net of management fees (“net of fees”) and assume reinvestment of dividends and other earnings. The returns do not reflect a fiduciary fulfilment fee payable to Bailard (where applicable), or custody and other account expenses not payable to Bailard.
Gross of management fee returns were calculated by Bailard’s portfolio accounting system. Through June 2016, net of management fee performance was calculated by netting down the gross return by a model fee of 0.65% (applied by reducing monthly returns by 0.054%). From July 2016, net of management fee performance was calculated by netting down the gross return by a model fee of 0.75% (applied by reducing monthly returns by 0.0625%). This model fee is representative of the fees charged for a separately managed portfolio and is the highest management fee for this strategy. As disclosed in Bailard Institutional’s Form ADV Part 2A, Bailard Institutional’s annual fee schedule for new accounts is 0.75% of the first $100 million and 0.70% on assets over $100 million. The Composite’s complete return history and a list of Bailard’s composites are available upon request.
Individual account management and construction will vary depending on each client’s investment needs and objectives, including liquidity needs, tax situation, risk tolerance and investment restrictions. Individual accounts may not have the same management fees, expenses, diversification, distributions and cash flows as the Composite account. As a result, an account’s actual performance may differ from the performance presented above due to, among other things, timing of investment, contributions and withdrawals, and the client’s restrictions, such as restrictions on eligibility to participate in initial public offerings. In addition, performance does not reflect the effects of taxation, which result in lower returns to taxable investors. An investment in this strategy involves a risk of loss, and the value of an investment in this strategy may decrease as well as increase. No representation is made that any account will obtain similar results to those shown above.
Bailard Wins First in Its Category for Best Places to Work
San Francisco, CA (March 7, 2024) – Bailard, a values-driven wealth and asset manager in the San Francisco Bay Area, has once again been named as one of the 2024 Best Places to Work for Financial Advisors by InvestmentNews. The firm was ranked first of 25 firms in its category (companies with 50 or more U.S. employees). This marks the fifth consecutive year InvestmentNews has recognized Bailard as a Best Place to Work for Financial Advisors.
This repeat recognition underscores Bailard’s enduring commitment to its values—accountability, compassion, courage, excellence, fairness, and independence. Not just buzzwords, these core principles form the foundation of Bailard, from client relationships to strategic business priorities and decision-making. The focus on accountability, for instance, helps foster a culture of trust and transparency; evidenced by Bailard’s open compensation policy and its achievement as a Certified B Corporation™ in 2023. Similarly, the firm’s commitment to excellence is reflected in a 99% client retention rate, underpinning long-lasting client relationships. Meanwhile, the emphasis on independence benefits the many; 70% of current employees own company stock.*
“Receiving this distinction from InvestmentNews is an honor and a testament to the dedication of our team,” said Michael Faust, CFA, President of Bailard Wealth Management. “Working alongside such committed and compassionate professionals in the wealth management space is truly rewarding. My sincere thanks go to each of our colleagues for their invaluable contributions to Bailard’s ongoing success.”
Bailard’s top placement in the large employer category was determined through comprehensive employer and employee surveys. These surveys delve into various aspects of company life, including culture, benefits, and career paths. InvestmentNews partnered with Best Companies Group, a research firm specializing in identifying great places to work, to compile the survey and recognition program.
Discover more about this year’s 75 Best Places to Work for Financial Advisors at https://www.investmentnews.com/best-in-wealth/the-best-places-to-work-for-financial-advisors-in-the-usa.
About Bailard, Inc.
Founded in 1969, Bailard is an independent asset and wealth management firm serving individuals, families, and institutions alike. Bailard has built a long‐term asset management track record across domestic and international equities, fixed income, and private real estate, as well as robust, in-house sustainable, responsible, and impact investing expertise. We combine these investment capabilities with financial, tax, and estate planning to provide comprehensive wealth management. Through it all, Bailard works with clients to align their financial goals with their values. Based in the San Francisco Bay Area with $5.8 billion in assets under management as of 12/31/2023, Bailard is a majority employee-owned and women-led firm, a Certified B Corporation™, and a Principles of Responsible Investing signatory.
About InvestmentNews
InvestmentNews is the leading source for news, analysis, and information essential to the financial advisory community. Since 1998, our standard of editorial excellence and deep industry knowledge has allowed us to educate, inform and engage the most influential financial advisers. Through a weekly newspaper, website, newsletters, research, events, videos, and webcasts, InvestmentNews provides exclusive and up-to-the-minute news, as well as actionable intelligence, that empowers financial advisers to serve their clients and run their businesses more effectively whenever, however, and wherever they need it.
About InvestmentNews’ Best Places to Work for Financial Advisors
To find and recognize the Best Places to Work for Financial Advisors, InvestmentNews and Best Companies Group first invited organizations to participate by filling out an employer form, which asked companies to explain their various offerings and practices. To be eligible, companies had to (1) be a registered investment adviser (RIA), affiliated with (but not an employee of) an independent broker-dealer (IBD), or a hybrid/dually registered firm affiliated with an IBD and doing business through an RIA; (2) be based in the US; (3) have a minimum of 15 full or part-time employees working in the US; (4) be in business for a minimum of 1 year. Next, employers completed an in-depth questionnaire and employees had the opportunity to offer their honest feedback by taking part in a company-wide survey. Once both portions of the assessment were complete, the team analyzed the data to determine if an organization had what it takes to be the “best.” Best Companies Group imposes a $499 data sharing fee, but there was no cost for Bailard to be considered for the award program.
* As of December 31, 2023. The Bailard Wealth Management client retention rate for the five-years ending December 31, 2023 was 99%. This number does not include terminations due to estate distributions, depleted accounts, accounts terminated by Bailard, or MY-FLEX® and MY-KIN® accounts.