OVERVIEW
Crossmark Core Fixed Income Strategy seeks to outperform the bond market over a market cycle while providing diversification, the ability to match liabilities and assets, and a steady income stream to the investor. The Strategy focuses on high quality, intermediate-maturity securities, active duration management, selective sector rotation, and selective security rotation. The sectors invested in for this strategy include U.S. investment-grade corporate issues, U.S. Government agency notes, and U.S. Treasury notes and bonds. The strategy utilizes a four-step investment process consisting of duration selection, yield curve selection, sector selection and security selection.
Snapshot
- Morningstar Category
- Intermediate Core Bond
- Inception Date
- 1/1/2001
- Strategy Assets
- $180,261,248
- Investment Minimum
- $100,000
- # of Holdings
- 46
Composite Performance (%)
| Composite Performance (%) | Quarter | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|---|
| Crossmark Core Fixed Income Wrap - Gross | -2.41 | 1.83 | 1.83 | -0.36 | 0.76 | 1.89 | 3.91 |
| Crossmark Core Fixed Income Wrap - Net | -3.14 | -1.15 | -1.15 | -3.30 | -2.23 | -1.12 | 0.84 |
| Bloomberg U.S. Government/Credit | -3.08 | 1.18 | 1.18 | -2.58 | -0.21 | 1.49 | 3.73 |
| Composite Calendar Year Performance (%) | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|
| Crossmark Core Fixed Income Wrap - Gross | 1.83 | 6.16 | -8.48 | -1.02 | 6.06 | 8.27 | -0.13 | 3.23 | 2.69 |
| Crossmark Core Fixed Income Wrap - Net | -1.15 | 3.04 | -11.24 | -3.96 | 2.91 | 5.08 | -3.09 | 0.17 | -0.33 |
| Bloomberg U.S. Government/Credit | 1.18 | 5.72 | -13.58 | -1.75 | 8.93 | 9.71 | -0.42 | 4.00 | 3.05 |
Composite illustrated is the Crossmark Core Fixed Income 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
VICTORIA L. FERNANDEZ, CFA
Resources
The Crossmark Core Fixed Income strategy invests in government obligations, government agency, and investment-grade corporate bonds with maturities ranging, on average, between 1-30 years in order to provide high income and preservation of capital. The Crossmark Core Fixed Income 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 the Bloomberg U.S. Government/Credit Bond Index. The Bloomberg U.S. Government/Credit Bond Index measures the performance of investments grade corporate debt and agency bonds that are dollar denominated and have a remaining maturity of greater than one year.
Index returns shown assume the reinvestment of all dividends and distributions.
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 Core Fixed Income strategy may not achieve its objective if the managers’ expectations regarding particular securities or markets are not met. 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.