RESEARCH

Nicholas A. Juhle, CFA® Chief Investment Officer

Arguably, 2022 was one of the more challenging in our organization’s history. We experienced high inflation that extended throughout the economy and induced monetary policy surprises as central banks tightened in response. Russia’s invasion of Ukraine shocked commodity prices exacerbating inflationary pressures and accelerating monetary policy changes. As the year progressed, tighter policy caused activity in the housing market to slow dramatically, and the combination of these factors significantly increased the likelihood of a recession. Relative to when the year began, all these developments came as surprises.

As a research team, our mission is to create comprehensive investment solutions that help our clients reach their financial goals. Our success depends heavily on the continued growth and development of our team. In 2022, Sam Riethman and Ebenezer Musookho completed Level I of the Chartered Financial Analyst® program, Jacob Barker and Mollie Felt passed the Certified Financial Planner™ examination, and Chris Burns completed the CFA Institute Certificate in ESG Investing. In addition, four research team members were recognized for their growth and impact receiving the following promotions:

As for the markets, there was virtually nowhere to hide as positive return opportunities were limited to investments in commodities and managed futures strategies. Equities declined anywhere from 13% for domestic mid-caps to 20% in emerging markets. Meanwhile, fixed income categories, which typically provide diversification benefits in down markets, declined alongside stocks. In 2022, even a balanced portfolio constructed with 60% stocks and 40% bonds posted a double-digit decline. Any way you slice it, 2022 was a very challenging year for investors. Despite a challenging opportunity set, our portfolio recommendations generated competitive outcomes for our clients as asset allocation decisions and outperformance in actively managed fixed income strategies offset headwinds in global equities.

Chris Burns – Vice President, Assistant Director of Research

Mollie Felt – Trader

Seth Kritzman – Senior Fixed Income Analyst

Ebenezer Musookho – Research Associate

Despite an ever-changing landscape, continued investment in the talent and tools comprising our platform, our disciplined approach and long-term orientation serve us well in our efforts. Investment decisions are made in alignment with our documented investment philosophy and always with the intention of serving our clients’ best interests. On behalf of the entire division, we remain both honored and humbled by the opportunity to manage our clients’ wealth.

Although 2022 was not a great year for investment markets, the Retirement Plan Division implemented many enhancements that strengthen our ability to deliver top-tier client service, great plan oversight and fantastic participant outcomes. Amongst the several highlights of 2022, seeing more of our clients face-toface was at the top of the list!