Crossmark applies its faith-based screening process to the majority of its assets. Across over a dozen equity, fixed-income, and multi-asset strategies, the Houston-based boutique’s assets under management in June 2022 totaled USD 5.1 billion. Many are yet to reach scale, raising longevity queries. Industry veteran Bob Doll, however, committed to several new US large-cap equity SMAs and mutual funds shortly after joining as CIO in May 2021, investing a good level of his own money. Crossmark’s model-driven investment process helps portfolio managers execute such an expansive lineup, though results across most of these strategies haven’t stood out. Predominantly tying analyst and portfolio manager compensation to investment performance is sensible, though adding strategy revenue to that component could encourage less prudent asset-chasing.
The business is in a stable position and can count on parent firm AGFinancial, a faith-based financial-services firm, for both operational support and as a major investor in Crossmark funds. Although Crossmark is small, it has no debt and would continue to be profitable at smaller AUM levels. CEO Mike Kern, who joined in May 2015, has continued to add to the firm’s senior leadership to support its growth ambitions.