OVERVIEW
The Crossmark Global Equity Income/Current Income Portfolio Strategy seeks to provide a balance of above-average income flows with long-term capital appreciation by investing in a combination of dividend-paying stocks and fixed-income securities. To achieve this goal on the equity side, we utilize a four-step process combining dividend income with relative risk-controlled portfolio construction, investing primarily in large-cap, dividend-paying stocks of U.S. and non-U.S. companies (primarily through ADRs) representing a broad spectrum of the global economy. On the fixed-income side, the focus is primarily on investment-grade corporate bonds and U.S. Government agency securities with a maximum maturity of ten years. In addition, an allocation to fixed-rate preferred stocks is utilized for income generation purposes, while maintaining an overall intermediate-term duration.
Snapshot
- Morningstar Category
- Allocation-50% to 70% Equity
- Inception Date
- 4/1/2012
- Strategy Assets
- $41,017,444
- Investment Minimum
- $200,000
- Average Market Cap (M)
- $89,027
- # of Holdings
- 101
- Portfolio Yield
- 3.63
Composite Performance (%)
| Composite Performance (%) | Quarter | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|---|
| Crossmark Global Equity Income/Current Income 50/50 Wrap - Gross | -2.44 | 7.15 | 7.15 | 2.69 | 5.52 | 6.34 | 6.76 |
| Crossmark Global Equity Income/Current Income 50/50 Wrap - Net | -3.16 | 4.02 | 4.02 | -0.36 | 2.39 | 3.19 | 3.60 |
| 50% MSCI World/50% Bloomberg Intermediate U.S. Government/Credit | -1.55 | 9.99 | 9.99 | 2.32 | 6.04 | 6.26 | 6.66 |
| Composite Calendar Year Performance (%) | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|
| Crossmark Global Equity Income/Current Income 50/50 Wrap - Gross | 7.15 | 11.96 | -9.74 | 11.83 | 8.07 | 17.21 | -3.16 | 14.49 | 8.30 |
| Crossmark Global Equity Income/Current Income 50/50 Wrap - Net | 4.02 | 8.68 | -12.50 | 8.55 | 4.81 | 13.80 | -6.07 | 11.13 | 5.14 |
| 50% MSCI World/50% Bloomberg Intermediate U.S. Government/Credit | 9.99 | 14.64 | -12.74 | 10.00 | 12.22 | 17.37 | -3.51 | 12.17 | 5.25 |
Composite illustrated is the Crossmark Balanced Global Equity Income/Current Income Portfolio Wrap Composite.
Custom 50/50 Benchmark is comprised of 50% S&P Global 1200 index and 50% Barclays Capital Intermediate Government/Credit index. Index returns shown assume the reinvestment of all dividends and distributions.
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
ROB BOTARD, CFA
VICTORIA L. FERNANDEZ, CFA
Resources
The Crossmark Balanced Global Equity & Current Income Portfolio strategy invests in an allocation of 50% dividend paying domestic and foreign stocks (generally held as ADRs), and 50% focuses on yield, liquidity and safety of principal by investing in government agency and investment-grade corporate bonds with maturities of less than ten years, in addition to selected fixed-rate preferred stocks. The Crossmark Balanced -Global Equity & Current Income Portfolio 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 April 1, 2012. The primary benchmark for this composite is a custom blend consisting of 50% S&P Global 1200 Index and 50% Bloomberg U.S. Government /Credit Intermediate Index. The S&P Global 1200 Index is a composite index, comprised of seven S&P regional and country headlines indices, many of which are the accepted leaders in their local markets – S&P 500, S&P Europe 350, S&P/TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX 50 (Australia), S&P Asia 50 and S&P Latin America 40. The Bloomberg U.S. Government /Credit Intermediate Index. The Bloomberg U.S. Government /Credit Intermediate Index measures the performance of the U.S. Dollar denominated U.S. Treasuries, government-related and investment grade U.S. Corporate securities that have a remaining maturity of greater than one year and less than ten years.
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 Global Equity Income/Current Income Portfolio strategy may not achieve its objective if the mangers’ 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).
Investments in securities of issuers in foreign countries involves additional risks not associated with domestic investments. These risks include, but are not limited to: (1) political and financial instability; (2) currency exchange rate fluctuations; (3) greater price volatility and less liquidity in particular securities and in certain foreign markets; (4) lack of uniform accounting, auditing, and financial reporting standards; (5) less government regulation and supervision of some foreign stock exchanges, brokers and listed companies; (6) delays in transaction settlement in certain foreign markets; (7) less availability of information; and (8) imposition of foreign withholding or other taxes.
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.