Investment Management

Managing investments is a daily activity for Calvert Wealth Management. Monitoring financial markets, keeping abreast of economic activity, having our finger on the pulse of global markets helps us provide a service to our clients in reaching their financial goals.

Our Investment Management process is based on the principles of Modern Portfolio Theory and implemented through the use of Asset Allocation Models. Each model is designed to manage risk to different levels. Since we know that one model does not fit all, our clients are matched to the model that best fits their individual risk tolerance and financial goals. Once a client’s portfolio is implemented, it goes through the same process of monitoring and rebalancing to keep it in tune to the selected model and goal.

Selecting investments for our portfolios is also a proven process. There is considerable research that has indicated that trying to “beat the market” is like trying to “beat the house” in gambling. So we don’t try to beat the market, we merge the markets together into our portfolios. There is more than the Dow Jones, or NASDAQ, there are many markets. With today’s choices of investment options, we have blended up to 15 different markets or asset classes into our portfolios. The investment options or classes that we find most suitable for our portfolios are as follows:

Large Company Stocks
Foreign Company Stocks
Real Estate
High Dividend Stocks

Government Bonds
Corporate Bonds
Convertible Bonds
Money Markets

Small Company Stocks
Emerging Market Stocks
Commodities
Preferred Stocks

Municipal Bonds
High Yield Bonds
CDs

These are the ingredients of our portfolios, and mixing them together in such a way to control risk while providing the desired total return, is our Asset Allocation process.

Learn More About Our Process

Our Portfolios

We have implemented 6 different portfolios for managing risk to selected levels. They can accommodate the most aggressive investor to the most conservative, from the longer time horizon to the short. An individual’s risk tolerance is a personal decision dependent upon factors such as age, time horizon, and the ability to withstand changes in the market. A description of each is as follows:
(Please note market conditions may change, and volatility beyond the described ranges has occurred historically.)

Financial Planning

Aggressive
This portfolio is designed for the most aggressive investor or a client with a very long time horizon, over 15 years. It is implemented using all equity markets from domestic to emerging markets. Investors in this portfolio can expect to see standard deviations in excess of 20% on average.
Moderate Aggressive
This portfolio is designed for investors who are slightly less aggressive and with time horizons of at least 10 years. It is implemented using equity markets from domestic to emerging markets and does contain higher yielding bond components. Investors in this portfolio can expect to see standard deviations between 15-20% on average.
Moderate
This portfolio is designed for investors who want a balance of growth and income. You could consider this an all-weather portfolio but with time horizons greater than 7 years. It is implemented using domestic and foreign equity markets, all classes of fixed income and bond components, and could be implemented with municipal income options for those investors concerned with higher tax rates. Investors in this portfolio can expect to see standard deviations between 10-15% on average.
Moderately Conservative
This portfolio is designed to give more income than growth for investors with time horizons greater than 5 years. The portfolio is implemented with all of the fixed income and bond components and exposures to domestic and foreign equity markets. For tax sensitive investors, this portfolio could also be implemented with municipal income options. Investors in this portfolio can expect to see standard deviations between 7-12% on average.
Conservative
This portfolio is designed for risk adverse investors and is designed to protect principal while giving the investor some opportunity for total return with time horizons greater than 5 years. The portfolio is constructed with all of the fixed income and bond components and a limited exposure to domestic and equity markets. For tax sensitive investors, this portfolio does have municipal income options. Investors in this portfolio can expect to see standard deviations between 4-7% on average.
Very Conservative
This portfolio is designed for income and short time horizons between 2-5 years. The portfolio is constructed with a mix of the fixed income components and different classes of bonds with lower risk levels. Investors in this portfolio can expect to see standard deviations between 2-5% on average.

*Investors with very short time horizons, less than 2 years, should only consider Money Market accounts, CD’s, or Treasury Bills.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you.

news@calvertwealth.com | (301) 812-1550