2022

Bond Yields Climb as a More Hawkish Fed Signals Steepest Hiking Cycle Since Mid-1990s

Inflation and Outflows Cause Parallel Shift Higher in Municipal Curve

Fed Rate Hikes Officially Begin, Treasury Yields Surge in March Capping a Difficult Quarter

Sharp Rate Rise, Curve Flattening Significantly Improves Tax-exempt Income and Valuations

In a quarter that presented many challenges for global equity markets, and where growth stocks significantly lagged value, Chautauqua's funds underperformed their benchmarks.

Worldwide investing offers an expanded opportunity set.

Russian Invasion of Ukraine Moves Markets, Credit Spreads Wider in February, Returns Negative

Rates Rise and Curve Flattens on Fed and Geopolitical Uncertainty, Municipal Credit Strength Limits Spread Widening, Negative Returns in February on Rising Rates; Lower-Quality Underperforms

After years of consistent outperformance, Growth stocks have lagged Value stocks since November 2020. Will this rotation to Value represents a secular change in market leadership?

Fed Articulates Faster Path of Policy Tightening to Fight Inflation; Yields Climb Sharply, Credit Spreads Widen; Agency RMBS Model Changes, January Returns Negative Across the Board

Liquidity Fades on Selling Pressure Driving Municipal Yields Sharply Higher, Puerto Rico Exits Bankruptcy, Sharply Negative Returns to Start 2022

The portfolio had one of the strongest quarters in its history versus its benchmark, the Russell 2500 Growth Index. Stock picking was the key driver of outperformance.

The portfolio outpaced its benchmark, the Russell MidCap® Growth Index, in the fourth quarter. More profitable companies outperformed again, particularly within computer services and software.

Baird Advisors sees a more complex and challenging municipal market environment ahead that will require a multi-faceted strategy—more like chess than checkers—to successfully navigate.

An unpredictable fourth quarter drove extreme gains and losses in stocks. Chautauqua's funds underperformed their benchmarks; though in an exceptionally volatile 2021 calendar year, they appreciated in value.

Key Municipal Events of 2021, Solid Q4 Adds to Strong Municipal Returns in 2021, 2022 Outlook and Opportunities

Pandemic Persists Yet Yields and Inflation Rise on Strong Growth in 2021, Fed Policy Pivot Driven by Labor and Supply Chain, 2022 Outlook