Crossmark CEO, President Mike Kern Steps Down; CIO Bob Doll Named Successor

Crossmark Global Investments CEO and President Mike Kern is stepping down to pursue other opportunities, and the faith-based investment management firm announced CIO Bob Doll will take on Kern’s responsibilities, effective immediately.

Doll, who joined Crossmark in 2021 as CIO, is also the portfolio manager for the firm’s multiple U.S. large-cap equity strategies. Crossmark reported $6.2 billion in assets under management as of December 31, 2023.

“Crossmark’s clients have benefitted from Bob’s exceptional investment expertise, market perspective, and institutional leadership ever since he joined our firm,” reads a statement from Crossmark’s board of directors. “We are excited about the vision and direction that he will bring to the organization in his expanded role as president and CEO.”

According to the announcement, Doll will continue to serve as CIO and remain manager of its U.S. large-cap equity strategies. The board also expressed gratitude to Kern, who leaves after eight years at the helm.

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“Under Mike’s leadership over the past eight years, Crossmark has made strides in transforming our culture, deepening our bench across all departments, and positioning the firm to build on its investment expertise going forward,” according to the statement.

Doll joined Crossmark following a brief retirement from his job as a senior portfolio manager at Nuveen since 2012. Prior to Nuveen, he was chief equity strategist at BlackRock, and before that, he was president and CIO of Merrill Lynch Investment Managers. Before joining Merrill Lynch, Doll was CIO of OppenheimerFunds.

“In my new role, I look forward to continuing to enhance the firm’s investment solutions and to leading a team that is notable for its talent, unique culture, and passion for delivering exceptional client service,” Doll said in a statement.

Bob Doll’s 2023 Predictions Underperformed

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Tags: BlackRock, Bob Doll, Crossmark Global Investments, Merrill Lynch Investment Managers, Mike Kern, Nuveen, OppenheimerFunds

U.S.-based insurers are preparing themselves in 2024 for potential market volatility stemming from fiscal/monetary policy, inflation, and the domestic political environment. Generally considered risk averse, these investors are preparing to embrace riskier investments this year, according to a report from institutional insurance asset management firm Conning, which oversees $214 billion in insurance and pension assets.

According to the firm, which surveyed 300 property and casualty and life insurance executives, 62% said firms are willing to take on more investment risk in 2024.

Insurers remain concerned about volatility. Among those surveyed, inflation (92%) was the biggest concern. The domestic political environment (88%) ranked second, based on uncertainty over how the markets will react to the U.S. presidential election.

Fiscal policy (88%), monetary policy (87%) and market volatility (87%) were also issues on the top of insurers’ minds, leading them to increase their risk tolerance across asset classes, according to Conning.

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Concerns Vary by Area

Depending on the type of insurer, concerns differed, according to Matt Reilly, managing director and head of insurance solutions at Conning. P&C insurers were more concerned about liquidity risk, as they have higher exposure to the risk, especially due to rising insurance claim costs, while life insurers were more optimistic about 2024 and more open to embracing investment risk in their portfolios. Because of uncertainty following 2023’s inflation, rising interest rates and declining bond portfolio values, insurers are expected to seek investments in new asset classes, increasing their allocations to alternative investments and rethinking how they invest in the public markets. In embracing risk, insurers also seek to embrace more complex portfolios.

Of those surveyed, approximately 63% said they plan to further increase investments in public fixed income, and 66% of insurers plan an increase of from 10% through 25% in private asset investments in the next two years.

One area in which Conning noticed a renewed interest was traditional core fixed income. After a year of elevated interest rates, this asset class gained the most attention from insurers across all asset classes. Insurers were willing to increase their allocations to traditional core fixed income for the first time, says Reilly.

Among private asset classes, 61% of insurers responding said they plan to increase their allocations to private equity. Slightly fewer (56%) reported planning to increase their exposure to private credit. Conning found that those increasing their exposure to private assets already had pre-existing exposure.

AI Both a Tool and a Risk

Insurers also reported interest in artificial intelligence. Among surveyed insurers, 75% reported using or piloting the use of AI in the investment process, specifically within investment research, portfolio management, investment accounting and trading.

AI also was named as a risk factor by 85% of the insurers surveyed. The biggest concerns were potential market changes as a result of AI (89%), cybersecurity and data privacy risks (87%), ethical considerations in the use of AI (86%), and a potential lack of human oversight of AI (77%).

Despite these risks, an overwhelming majority of insurers (89%) reported that benefits from the implementation of AI will outweigh risks of its use in the investment process.