Partner Perspectives: 2022 Annual Outlook

Prepare for 2022 as portfolio managers from all five of our independent affiliates break down the trends that are poised to redefine opportunity and risk for investors in the coming year.

download key themes

*Financial professionals, click the tabs below to watch each 30-minute discussion.

Markets at Mid-year Hero Image

Monetary Policy vs. Economic Reality Image

Monetary policy vs. economic reality

Persistent inflation, supply chain disruptions, and labor market dynamics are raising the degree of difficulty of the U.S. Federal Reserve’s plan to scale down its support for debt markets and raise interest rates. We assess the chance of a policy error, its implications, and the outlook for fixed income investors.

takeaways
  • Monetary policy has been long been out of sync with larger economic conditions, but this time the scale of the Fed’s support and inflation have changed the game.
  • Negative real interest rates are a real problem, and a repricing needs to take place.
  • A reckoning is nigh for some risk assets as the Fed normalizes monetary policy.
*Financial professionals, click the button below to watch the 30-minute discussion.
watch the replay

Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates — ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments — we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk Considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody’s and Standard & Poor’s®. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities (see below for a discussion of the risk associated with convertible securities). However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professionals. Any forecasts, figures, opinions, or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also expands the central bank's balance sheet.

The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services. The U.S. Bureau of Labor Statistics bases the index on prices of food, clothing, shelter, fuels, transportation, doctors’ and dentists’ services, drugs, and other goods and services that people buy for day-to-day living. Prices are collected each month in 75 urban areas across the country from about 6,000 households and 22,000 retailers.

Core inflation is measured by the Personal Consumption Expenditures (PCE) excluding Food and Energy, Price Index, also known as the core PCE price index, is a measure of the prices that U.S. consumers pay for goods and services, not including two categories – food and energy – where prices tend to swing up and down more dramatically and more often than other prices. The core PCE price index, released monthly by the U.S. Department of Commerce Bureau of Economic Analysis, measures inflation trends and is watched closely by the U.S. Federal Reserve as it conducts monetary policy.

Modern Monetary Theory (MMT) is a heterodox macroeconomic theory that, for countries with complete control over their own fiat currency, government spending cannot be thought of like a household budget. Instead of thinking of taxes as income and government spending as expenses in a checkbook, MMT proponents say that fiscal policy is merely a representation of how much money the government is putting into the economy or taking out.

Basis points(bps) are measurements used in discussions of interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%.

Duration incorporates a bond’s yield, coupon, final maturity and call features into one number, expressed in years, that indicates how price-sensitive a bond or portfolio is to changes in interest rates. Bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations.

Growth investing is an investment strategy that focuses on companies expected to grow at an above-average rate compared to their industry or the market.

Unconstrained investing is an investing style that allows a fund or portfolio manager to pursue returns across many asset classes and sectors without limiting the portfolio to investments that match a particular benchmark.

Cyclical securities have prices influenced by macroeconomic changes in the economy and are known for following the economy as it cycles through expansion, peak, recession, and recovery.

CFD22-0053 Exp. 6/30/2022


Supply Chain Image

Lessons from the supply chain breakdown

Supply chain bottlenecks that bedeviled the global economy in 2021 appear to be easing, at least at the margins. No one expects that supply chain disruptions to fade away soon, but resolving the problems could create opportunity for investors.

takeaways
  • Despite signs of improvement, semiconductor inventories remain low and are not expected to recover until the second half of 2022 – and likely not until 2023 for automotive chips.
  • Supply chains were under stress even before the pandemic, with fleets of aging trucks and a shrinking pool of drivers. Like everywhere else, labor is key.
  • Potential investor opportunities include capital expenditure, especially for automation, and real estate investment trusts focused on warehouses that shorten the supply chain.
*Financial professionals, click the button below to watch the 30-minute discussion.
watch the replay

Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates — ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments — we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk Considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Investing in small-sized companies is based on the premise that relatively small companies will increase their earnings and grow into larger, more valuable companies. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. Historically, small-cap stocks have experienced greater volatility than other equity asset classes, and they may be less liquid than larger cap stocks. Thus, relative to larger, more liquid stocks, investing in small-cap stocks involves potentially greater volatility and risk. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professionals. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

The ADP® National Employment ReportTM is a monthly measure of the change in total U.S. nonfarm private employment derived from actual, anonymous payroll data of client companies served by the payroll, tax service and human resources management company ADP. The report measures changes within a group of nearly 26 million U.S. workers and is produced by the ADP Research Institute® in collaboration with Moody’s Analytics.

Capital expenditures, or capex, are monies used by a company to buy, improve, or maintain physical assets such as real estate, facilities, technology, or equipment, and may include new projects or investments.

Cyclical stocks have prices influenced by macroeconomic changes in the economy and are known for following the economy as it cycles through expansion, peak, recession, and recovery.

CFD22-0053 Exp. 6/30/2022


Sustainable Investing Image

Sustainable investing: Themes and opportunities in 2022

Sustainable investing continues to gain traction in both equity and fixed-income markets, but the focus and discussion have shifted from what investments to avoid to how to engage with management teams to drive better business outcomes.

takeaways
  • Companies actively focused on investing in human capital are increasingly seen as having a competitive edge.
  • There’s a growing acknowledgement that the costs of carbon emissions have to go up – and not just for energy companies.
  • ESG or sustainable bonds could account for perhaps 10% of newly issued corporate bonds next year.
*Financial professionals, click the button below to watch the 30-minute discussion.
watch the replay

Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates - ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments - we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody's and Standard & Poor's. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities (see below for a discussion of the risk associated with convertible securities). However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital.

The investment strategy will include only holdings deemed consistent with the applicable Environmental Social Governance (ESG) guidelines. As a result, the universe of investments available to the strategy will be more limited than strategies not applying such guidelines, which may cause it to perform differently than similar strategies that do not have such a policy.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professionals. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions, and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

Alpha is a measure of the difference between an investment manager's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the manager has performed better than its Beta would predict. A negative Alpha indicates the manager performed worse than expected based on its level of risk. Thus it is possible for a manager to outperform an index and still have a negative Alpha. In general, however, the higher the Alpha the better.

Beta is a measure of a manager's sensitivity to market movements. In general, the larger the Beta, the more volatile the historical performance.

CFD22-0053 Exp. 6/30/2022


International Investing Image

Opportunity abroad: Why invest internationally now?

International markets could offer some investors untapped diversification potential. Meanwhile, 2021 featured huge dispersion across both developed and emerging markets in everything from overall economic growth to currency valuations to equity performance.

takeaways
  • After being seen since about mid-2014 as something to be sold off, emerging market currencies are looking more attractive on a valuation basis.
  • The crisis at the Chinese real estate giant Evergrande is generally not expected to have spillover effects into the broader economy.
  • Meanwhile, China’s crackdown on its tech giants and environmental concerns may create some daylight for small caps there and in other emerging markets.
*Financial professionals, click the button below to watch the 30-minute discussion.
watch the replay

Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates - ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments - we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk Considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards, and potential political and economic instability. These risks are further accentuated in emerging market countries, where risks can also include possible economic dependency on revenues from particular commodities or on international aid or development assistance, currency transfer restrictions, and liquidity risks related to lower trading volumes.

Investments in equities are subject to the risk that stock prices will fall over short or long periods of time. In the past, the equity markets have moved in cycles, and the value of a client's equity securities may fluctuate drastically from day to day. Investing in foreign securities poses additional market risks since political and economic events unique in a country or region will affect those markets and their issuers. As a result, investments in foreign securities may experience greater volatility than U.S. securities. These securities may be traded over-the-counter or listed on an exchange. Accounts are included in the composite once they are fully transitioned to our investment strategy. As of January 1, 2021, the Emerging Markets composite was renamed the Emerging Markets Non-Restricted composite.

Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody's and Standard & Poor's. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities (see below for a discussion of the risk associated with convertible securities). However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital.

The investment strategy will include only holdings deemed consistent with the applicable Environmental Social Governance (ESG) guidelines. As a result, the universe of investments available to the strategy will be more limited than strategies not applying such guidelines, which may cause it to perform differently than similar strategies that do not have such a policy.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professionals. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

Growth investing is a stock-buying strategy that focuses on companies expected to grow at an above-average rate compared to their industry or the market.

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value.

Foreign exchange (forex or FX) is the trading of one currency for another.

Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also expands the central bank's balance sheet.

Beta is a measure of the volatility or systemic risk of a security or portfolio compared with the market as a whole.

A credit spread is the difference in yield between a U.S. Treasury bond and another debt security with the same maturity but different credit quality. Also referred to as "bond spreads" or "default spreads," credit spreads are measured in basis points, with a 1% difference in yield equaling a spread of 100 basis points. Credit spreads reflect the risk of the debt security being compared with the Treasury bond, which is considered to be risk-free. Higher quality securities have a lower chance of the issuer defaulting. Lower quality securities have a higher chance of the issuer defaulting.

CFD22-0053 Exp. 6/30/2022


Monetary Policy vs. Economic Reality Image

Growth vs. value whiplash: What’s ahead in 2022?

Equities spent 2021 toggling between growth and value. Looking ahead there is a fundamental question to ask no matter which factor investors may be considering.

takeaways
  • Growth rode high for a long time because of easy monetary policy. With interest rates starting to rise, that’s changed.
  • Banks and semiconductors look attractive, though for different reasons.
  • Quality within both growth and value is a safe haven in times of uncertainty, and 2022 could be just such a time.
*Financial professionals, click the button below to watch the 30-minute discussion.
watch the replay

Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates - ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments - we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk Considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Investments in small-cap companies generally involve greater risks than investing in larger capitalization companies. Small-cap companies often have narrower commercial markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a fund's portfolio. Additionally, small-cap companies may have less market liquidity than larger companies.

Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, investors may punish the stocks excessively, even if earnings showed an absolute increase. Growth company stocks also typically lack the dividend yield that can cushion stock prices in market downturns.

Value investing is based on the potential for a company's stock price to rise based upon anticipated changes in the market or within the company itself. Value stocks have historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professional advisers. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

Growth investing is a stock-buying strategy that focuses on companies expected to grow at an above-average rate compared to their industry or the market.

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value.

A yield curve is a line that plots yields (interest rates) of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity.

The "2s/10s" is a bellwether indicator that tracks the spread between the 10-year U.S. Treasury bond and the 2-year Treasury note.

Duration incorporates a bond's yield, coupon, final maturity and call features into one number, expressed in years, that indicates how price-sensitive a bond or portfolio is to changes in interest rates. Bonds with higher durations carry more risk and have higher price volatility than bonds with lower durations.

Concept stocks are defined as having a price-to-sales ratio greater than 5. The large size of the ratio suggests that investors may be attracted to the idea, promise, or concept of a company in the absence of other common value metrics. Concept stocks often have little or no earnings, making the more traditional price-to-earnings ratio difficult to apply.

Beta is a measure of the volatility or systemic risk of a security or portfolio compared with the market as a whole.

Short sellers bet that the price of an asset will decline in value. To profit off that drop, they agree to buy shares of the asset at a predetermined price on a set expiration date. In the meantime, they borrow shares of the asset to sell at the prevailing higher price with the expectation that they will be able to buy them later at the lower price attached to the expiration date.

The S&P 500® Index measures change in stock market conditions based on the average performance of 500 widely held common stocks. It is a market-weighted index calculated on a total return basis with dividend reinvested. The S&P 500 represents approximately 75% of the investable U.S. equity market.

The Russell 1000® Index is a subset of the Russell 3000® Index. It represents the top companies by market capitalization. The Russell 1000 typically comprises approximately 90% of the total market capitalization of all listed U.S. stocks. It is considered a bellwether index for large-cap investing.

The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000® Index.

The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 2000® Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Frank Russell Company (Russell) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication.

CFD22-0053 Exp. 6/30/2022


Monetary Policy vs. Economic Reality Image

Tech, labor, industry: Which structural shifts are here to stay?

The COVID-19 pandemic accelerated many structural shifts already underway in the economy. Wider adoption will create opportunity in many pockets of the economy.

takeaways
  • Beyond its use in cryptocurrencies, blockchain technology is poised to play new roles in a wide range of industries, including retail, consumer packaged goods, healthcare, medicine, manufacturing, aerospace defense – even diamond-mining.
  • In a growing war for talent, companies with strong cultures and coherent strategies to attract and retain workers will be better positioned to win.
  • Profound change is riding in on the quiet hum of electric vehicles.
*Financial professionals, click the button below to watch the 30-minute discussion.
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Contact us to learn more about our insights and solutions.

Our Affiliates

ClariVest Asset Management Cougar Global Investments Eagle Asset Management Reams Asset Management Scout Investments

About Carillon Tower Advisers

Carillon Tower Advisers is a global asset management company that combines the exceptional insight and agility of individual investment teams with the strength and stability of a full-service firm. Together with our partner affiliates - ClariVest Asset Management, Cougar Global Investments, Eagle Asset Management, Reams Asset Management (a division of Scout Investments), and Scout Investments - we offer a range of investment strategies and asset classes, each with a focus on risk-adjusted returns and alpha generation. Carillon Tower Advisers believes providing a lineup of institutional-class portfolio managers, spanning a wide range of disciplines and investing vehicles, is the best way to help investors seek their long-term financial goals.

Risk Considerations

Investing involves risk, including risk of loss. Diversification does not ensure a profit or guarantee against loss.

Investments in small-cap companies generally involve greater risks than investing in larger capitalization companies. Small-cap companies often have narrower commercial markets and more limited managerial and financial resources than larger, more established companies. As a result, their performance can be more volatile and they face greater risk of business failure, which could increase the volatility of a fund's portfolio. Additionally, small-cap companies may have less market liquidity than larger companies.

Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, investors may punish the stocks excessively, even if earnings showed an absolute increase. Growth company stocks also typically lack the dividend yield that can cushion stock prices in market downturns.

Value investing is based on the potential for a company's stock price to rise based upon anticipated changes in the market or within the company itself. Value stocks have historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk.

Historically, bonds have indeed provided less volatility and less risk of loss of capital than has equity investing. However, there are many factors which may affect the risk and return profile of a fixed-income portfolio. The two most prominent factors are interest-rate movements and the creditworthiness of the bond issuer. The risk of a change in the market value of the investment due to changes in interest rates is known as interest-rate risk. Interest-rate risk is subject to many variables but may be analyzed based on various data (e.g., effective duration). The risk that the issuer may default on interest and/or principal payments is often referred to as credit risk. Credit risk is typically measured by ratings issued by ratings agencies such as Moody's and Standard & Poor's. Bonds issued by the U.S. Government have significantly less risk of default than those issued by corporations and municipalities (see below for a discussion of the risk associated with convertible securities). However, the overall return on Government bonds tends to be less than these other types of fixed-income securities. Finally, reinvestment risk is the possibility that the proceeds of a maturing investment must be invested in a lower yielding security, all other things held constant, due to changes in the interest-rate environment. Investors should pay careful attention to the types of fixed-income securities which comprise their portfolio, and remember that, as with all investments, there is the risk of the loss of capital.

The investment strategy will include only holdings deemed consistent with the applicable Environmental Social Governance (ESG) guidelines. As a result, the universe of investments available to the strategy will be more limited than strategies not applying such guidelines, which may cause it to perform differently than similar strategies that do not have such a policy.

Disclosures

Carillon Tower Advisers is the Investment Adviser for the Carillon Family of Funds. Scout Investments is the sub-adviser to certain of the funds and Reams Asset Management is a division of Scout Investments which is a wholly owned subsidiary of Carillon Tower Advisers. Eagle Asset Management is the sub-adviser to certain of the funds and a wholly owned subsidiary of Carillon Tower Advisers. ClariVest Asset Management is the sub-adviser to certain of the funds and Eagle Asset Management owns 100% of ClariVest Asset Management. Carillon Fund Distributors serves as the underwriter and distributor of the Carillon Family of Funds and is a wholly owned subsidiary of Eagle Asset Management.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

Not FDIC insured. No bank guarantee. May lose value.

Carillon mutual funds may be offered only to persons in the United States and its territories, and by way of a prospectus. This website should not be considered a solicitation or offering of any Carillon mutual fund to investors residing outside the United States or its territories.

Carillon Fund Distributors®, Inc., Member FINRA. 880 Carillon Parkway, St. Petersburg, FL 33716

Index or benchmark performance presented in this document does not reflect the deduction of advisory fees, transaction charges, and other expenses, which would reduce performance. Indexes are unmanaged. It is not possible to invest directly in an index. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce return.

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from Carillon Tower Advisers or any of its affiliates to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own professionals. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields is not a reliable indicator of current and future results.

Definitions

Alpha is a measure of the difference between an investment manager's actual returns and its expected performance, given its level of risk as measured by Beta. A positive Alpha figure indicates the manager has performed better than its Beta would predict. A negative Alpha indicates the manager performed worse than expected based on its level of risk. Thus it is possible for a manager to outperform an index and still have a negative Alpha. In general, however, the higher the Alpha the better.

Beta is a measure of a manager's sensitivity to market movements. In general, the larger the Beta, the more volatile the historical performance.

An exchange traded fund (ETF) is a type of security that tracks a market index, sector, commodity, or other assets, but which can be bought or sold on a stock exchange the same way a regular stock or other security can. An ETF can be structured to track a wide variety of securities, including stocks, bonds, individual commodities, diverse aggregations of securities, and specific investment strategies.

Equity duration is the cash-flow weighted average time at which investors can expect to receive the cash flows from their investment in a company's stock. Long-duration stocks include fast-growing technology companies, including those that may not pay any dividends in their early years, while short-duration stocks tend to be more mature companies with higher ratios to dividend to price.

The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8 percent of the total market capitalization of the Russell 3000® Index.

The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Frank Russell Company (Russell) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data, and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or endorse the content of this communication.

CFD22-0053 Exp. 6/30/2022