OVERVIEW
Crossmark Balanced Core Strategy seeks to provide a balance of long-term growth and current income by investing in a combination of equity and fixed income securities. The Strategy seeks to take advantage of the opportunities presented by each – the potential for capital appreciation from the equity component and current income/lower volatility from the fixed income component. The Balanced Core strategy targets a mix of 50% equities and 50% fixed income securities. It employs a rebalancing feature to ensure the allocation stays on track throughout a full market cycle. This unique rebalancing process is triggered by market movements, not by a preset schedule or calendar. This allows for up to 10% appreciation in either component before the rebalance is triggered, providing an opportunity for the portfolio to capture gains. Once the equity or fixed income component reaches 60% of total asset value, the portfolio is rebalanced to 50%/50%. Each component is managed by the investment team of the underlying strategies – the Large Cap Core Unscreened strategy and the Core Fixed Income strategy.
Snapshot
- Morningstar Category
- US Allocation--50% to 70% Equity
- Inception Date
- 1/1/2001
- Strategy Assets
- $549,802,454
- Investment Minimum
- $150,000
- Average Market Cap (M)
- $423,625
- # of Holdings
- 91
- Portfolio Yield
- 2.55
Composite Performance (%)
| Composite Performance (%) | Quarter | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|---|
| Crossmark Balanced Core 50/50 Wrap - Gross | 5.62 | 13.04 | 22.40 | 7.01 | 10.10 | 9.25 | 6.81 |
| Crossmark Balanced Core 50/50 Wrap - Net | 4.84 | 10.57 | 18.87 | 3.85 | 6.84 | 6.02 | 3.64 |
| 50% Russell 1000/50% Bloomberg Barclays U.S. Government/Credit | 5.59 | 12.58 | 23.04 | 4.73 | 8.11 | 7.70 | 6.53 |
| Composite Calendar Year Performance (%) | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|
| Crossmark Balanced Core 50/50 Wrap - Gross | 13.36 | -9.87 | 15.18 | 15.63 | 20.44 | -0.71 | 15.94 | 6.57 | 3.17 |
| Crossmark Balanced Core 50/50 Wrap - Net | 10.06 | -12.63 | 11.79 | 12.16 | 16.94 | -3.69 | 12.53 | 3.45 | 0.08 |
| 50% Russell 1000/50% Bloomberg Barclays U.S. Government/Credit | 15.81 | -16.06 | 11.69 | 15.69 | 20.43 | -2.31 | 12.55 | 7.65 | 0.78 |
Composite illustrated is the Crossmark Balanced Core Wrap Composite.
Net performance was calculated using the hypothetical highest annual all-inclusive wrap fee of 3.00% by deducting .25% from each month’s return. Gross performance is shown as supplemental information and is stated as pure gross of all fees as the returns have not been reduced by transaction costs. Wrap fees include Crossmark’s portfolio management fee as well as all charges for trading costs, custody, and other administrative fees. Due to the effect of compounding, annual returns shown net of fees may be lower than the return that would be shown if the fee were deducted from the gross return at a single point in time.
Portfolio Managers
ROBERT C. DOLL, CFA
VICTORIA L. FERNANDEZ, CFA
Resources
Custom 50/50 Benchmark is composed of 50% Russell 1000 index and 50% Bloomberg U.S. Government/Credit index. Index returns shown assume the reinvestment of all dividends and distributions.
The Crossmark Balanced Core strategy invests in an allocation of 50% stocks of large cap U.S. companies, and 50% government obligations, government agency securities, and investment-grade corporate bonds, each with maturities ranging, on average, between 1 and 30 years. The Crossmark Balanced Core 50/50 Wrap Composite is comprised of all discretionary, fee-paying, wrap accounts managed using this strategy. The composite has a creation date and inception date of January 1, 2001. The primary benchmark for this composite is a custom blend consisting of 50% Russell 1000 Index and 50% Bloomberg U.S. Government/Credit Index. The Russell 1000 Index is a market index that tracks the largest 1,000 stocks by market capitalization that are included in the Russell 3000 index. The Bloomberg U.S. Government/Credit Bond Index measures the performance of investment grade corporate debt and agency bonds that are dollar denominated and have a remaining maturity of greater than one year. The blended benchmark returns presented are calculated by linking the monthly returns of the blended components.
The U.S. Dollar is the currency used to express performance. The performance reflects the reinvestment of dividends and other earnings to the extent that client accounts included in the composite elected to reinvest dividends and earnings. Performance figures shown gross of fees do not reflect the payment of investment advisory fees.
GIPS is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
All Investments are subject to risks, including the possible loss of principal. Past performance does not guarantee future results. The Balanced Core strategy may not achieve its objective if the managers’ expectations regarding particular securities or markets are not met. Equity investments generally involve two principal risks—market risk and selection risk. The value of equity securities will rise and fall in response to general market and/or economic conditions (equity market risk). The value of any individual equity security will rise and fall in response to the market’s perception of the issuer’s revenues, earnings, balance sheet, credit worthiness, business plan, and overall perception of the viability of the issuer’s business (selection risk).
Fixed income investments generally involve three principal risks—interest rate risk, credit risk, and liquidity risk. Prices of fixed-income securities rise and fall in response to interest rate changes (interest rate risk). Generally, when interest rates rise, prices of fixed-income securities fall. The longer the duration of the security, the more sensitive the security is to this risk. There is also a risk that the issuer of a note or bond will be unable to pay agreed interest payments and may be unable to repay the principal upon maturity (credit risk). Lower-rated bonds, and bonds with longer final maturities, generally have higher credit risks. As interest rates rise and/or the credit risk associated with a particular issuer changes, bonds held within a portfolio may become difficult to liquidate without realizing a loss (liquidity risk).
Crossmark Global Investments, Inc. (Crossmark) is an investment adviser registered with the Securities and Exchange Commission that provides discretionary investment management services to mutual funds, institutions, and individual clients. Investment advice can be provided only after the delivery of Crossmark’s firm Brochure and Brochure Supplement Form ADV (Parts 2A and 2B) and Form CRS, and once a properly executed investment advisory agreement has been entered into by the client. Crossmark claims compliance with the Global Investment Performance Standards (GIPS®). Prospective clients can obtain a GIPS Composite Report by sending a request to: advisorsolutions@crossmarkglobal.com.