OVERVIEW
Crossmark Municipal Fixed Income Strategy invests primarily in investment-grade municipal debt issues. It is a conservative, actively-managed solution focusing on municipal bonds analyzed to be most likely to fulfill the strategy objective. Generally, the portfolio will consist of 15 to 30 individual issues. By actively managing exposure to various states and sectors, the Strategy aims to maximize the generation of tax-free income. The issues are limited to those of A rated or better at time of purchase, substantially reducing the risk of default. Individual issues are selected from general obligation and essential service sectors such as water, sewer, utilities, transportation, highways, and education. Current exclusions include hospitals, assisted living, retirement centers, hotel, healthcare, housing, jail or student dormitory-related, and U.S. territories (or states at the discretion of the portfolio manager).
The Strategy focuses on short- to intermediate-term fixed rate callable issues. Municipal bonds are limited to those with a credit rating of single-A or better as measured by Moody’s, S&P or Fitch at the time of purchase. Investors can choose from three different strategies to best accomplish their tax-free income goals.
Snapshot
- Morningstar Category
- US Muni National Short
- Inception Date
- 1/1/2002
- Strategy Assets
- $454,440,606
- Investment Minimum
- $200,000
- # of Holdings
- 19
Composite Performance (%)
| Composite Performance (%) | Quarter | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Inception |
|---|---|---|---|---|---|---|---|
| Crossmark Municipal Fixed Income Wrap - Gross | -0.88 | 1.32 | 1.32 | 0.69 | 1.16 | 1.52 | 3.22 |
| Crossmark Municipal Fixed Income Wrap - Net | -1.61 | -1.65 | -1.65 | -2.29 | -1.84 | -1.49 | 0.16 |
| Bloomberg Muni Quality Intermediate | -1.07 | 0.62 | 0.62 | -0.04 | 0.94 | 1.82 | 3.44 |
| Composite Calendar Year Performance (%) | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|
| Crossmark Municipal Fixed Income Wrap - Gross | 1.32 | 4.48 | -3.56 | 0.96 | 2.76 | 3.52 | 1.62 | 2.11 | 0.56 |
| Crossmark Municipal Fixed Income Wrap - Net | -1.65 | 1.40 | -6.45 | -2.03 | -0.29 | 0.46 | -1.39 | -0.92 | -2.41 |
| Bloomberg Muni Quality Intermediate | 0.62 | 4.65 | -5.15 | 0.33 | 4.58 | 5.88 | 1.51 | 3.73 | -0.19 |
Composite illustrated is the Crossmark Municipal 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
PATRICK N. GARBODEN
Resources
The Crossmark Fixed Municipal strategy invests solely in municipal bonds. The Crossmark Municipal Wrap Composite is comprised of all discretionary, fee-paying, wrap fee accounts managed using this strategy. The composite has a creation date and inception date of January 1, 2002. The primary benchmark for this composite is the Bloomberg Municipal Quality Intermediate Index. The Bloomberg Municipal Quality Intermediate Index is an unmanaged index that consists of investment grade intermediate term municipal bonds.
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.
All Investments are subject to risks, including the possible loss of principal. Past performance does not guarantee future results. The Municipal 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). Many municipal bonds also include call features that allow the issuer to call the bonds-repaying the principal before maturity-usually done in the context of a refinancing transaction if/when interest rates fall. When a bond is called, the holder does not incur a loss, but cash received from the call must be redeployed, generally in a less favorable interest rate environment (call 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.