Overview of InvestingCatholic – Part 2

In our previous blog post “Overview of InvestingCatholic – Part 1”   we learned that InvestingCatholic is a SEC Registered Investment Adviser who provides low cost investing in portfolios screened for Catholic values.  In this blog post, “Overview of InvestingCatholic – Part 2” we are going to take a deeper dive into the Catholic Values Portfolios designed by InvestingCatholic and made available exclusively to our clients.

Our Catholic Values Portfolios

Our investment advisers at InvestingCatholic have designed diversified model portfolios that are built upon Modern Portfolio Theory. All of our model portfolios are built with investments screened for Catholic values using asset allocation and fundamental analysis.  We believe that diversified portfolios can minimize investment risk and have the potential to produce a higher degree of expected return for each level of risk. We recommend a suitable investment model for our clients based upon a short risk tolerance survey that the client will complete online when setting up each new account. The survey evaluates our client’s ability to bear risk and their investment time horizon.

Asset allocation is an important part of constructing diversified portfolios. It is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon among various asset classes. The asset classes may include equities, fixed-income, real estate, and cash and equivalents. Each class has different levels of risk and return, so each will behave differently over time. Our model portfolios are constructed to maximize expected return while reducing potential risk according to Modern Portfolio Theory. This theory states that risk must be considered as well as return when investing and that diversification can help to reduce risk within a portfolio. We build investment models by selecting a variety of investments to achieve diversification of asset classes in order to attempt to maximize the portfolio’s expected return for a given amount of portfolio risk

When new accounts are opened, you will choose one of our Catholic Portfolios. Depending upon the type of account you may choose our Catholic Values Indexed ETF Series or our Catholic Values Indexed ETF Retirement “R” Series (IRA accounts only).  Other options include the Knights of Columbus Mutual Funds Series and the Ave Maria Mutual Fund Series.

Catholic Values Indexed ETF Series

Designed as a low-cost option for Catholic Values investors, this series of professionally managed risk-based Catholic Values portfolios are built with low-cost Index ETF’s. This Series invests in a globally diversified basket of assets that have been carefully screened for Catholic values and built for the taxable investor. Index fund investing is a fully passive investment philosophy designed to attempt to track the benchmark of a specific market index. Each risk-based ETF portfolio model allocation is constructed using the appropriate asset allocation mix of Indexed ETF funds to achieve the investment diversification suitable for its respective risk profile. Each portfolio is rebalanced on a quarterly basis in order to maintain its pre-set asset allocation throughout all market cycles. The Catholic Values Indexed ETF Series of risk-based portfolios represent a wide range of investor risk profiles ranging from Defensive through Aggressive allocations tailored specifically for the needs of clients within taxable accounts.

Catholic Values Indexed ETF Retirement “R” Series

Designed as a low-cost option for Catholic Values investors, this series of professionally managed risk-based Catholic Values portfolio models are built with low-cost Index ETF’s.  This Series invests in a globally diversified basket of assets that have been carefully screened for Catholic values and built for retirement accounts. Index fund investing is a fully passive investment philosophy designed to attempt to track the benchmark of a specific market index. Each risk-based ETF portfolio model allocation is constructed using the appropriate asset allocation mix of Indexed ETF funds to achieve the investment diversification suitable for its respective risk profile. Each portfolio is rebalanced on a quarterly basis in order to maintain its pre-set asset allocation throughout all market cycles. The Catholic Values Indexed ETF Retirement “R” Series of risk-based portfolios represent a wide range of investor risk profiles ranging from Defensive through Aggressive allocations tailored specifically for the needs of clients within retirement accounts.

Knights of Columbus Mutual Fund Series

Designed for the investor looking for professionally managed Catholic values mutual funds, the Knights of Columbus Series invests in a globally diversified basket of assets that have been carefully screened for Catholic values comprised solely of Knights of Columbus Institutional Class mutual funds. Knights of Columbus, the largest Catholic fraternal organization and insurance company now offers six actively managed funds representing investments in both equities and fixed income that are screened for Catholic values according to the U.S. Bishops Socially Responsible Investment Guidelines.  InvestingCatholic constructs each risk-based Knights of Columbus portfolio model allocation using the appropriate asset allocation mix suitable for its respective risk profile. The Knights of Columbus Mutual Funds Series of risk-based portfolios represent a wide range of investor risk profiles ranging from Defensive through Aggressive allocations suitable for the needs of all clients within both taxable and retirement accounts.

Ave Maria Mutual Fund Series

Designed for the investor looking for professionally managed Catholic values mutual funds, the Ave Maria Series invests in a globally diversified basket of assets that have been carefully screened for Catholic values comprised solely of Ave Maria mutual funds. Ave Maria, the largest provider of Catholic values mutual funds offers five actively managed funds representing investments in both equities and fixed income that are screened for Catholic values using their propriety criteria. InvestingCatholic constructs each risk-based Ave Maria portfolio model allocation using the appropriate asset allocation mix suitable for its respective risk profile. Each portfolio is rebalanced on a quarterly basis in order to maintain its pre-set asset allocation throughout all market cycles. The Ave Maria Mutual Fund Series of risk-based portfolios represents a wide range of investor risk profiles ranging from Defensive through Aggressive allocations suitable for the needs of all clients within both taxable and retirement accounts.

Automatic Quarterly Folio Re-balancing

At InvestingCatholic, we manage our model portfolios passively and re-balance them every quarter.  Re-balancing on a regular basis is an important aspect to maintain the optimal asset allocation within the model portfolios.  Over time, the weighting of the assets within a model portfolio tend to drift away from the intended targets due to the normal fluctuation in asset prices and dividends and other gains that accrue within the portfolio. Left alone without re-balancing, models can shift too far away from their intended targets and no longer reflect the intended risk and reward characteristics of the investment. Portfolio re-balancing is the process of realigning the investments within the portfolio back to their original target allocations. It is done through a process of selling overweight positions and buying positions that have become underweight. Just as it is important to tune up your car on regular intervals to keep your engine running smoothly, the same is true for your investments.

Tax Management Tools

Advanced Tax Gain/Loss Harvesting and Automatic Tax Lot Management

Our clients have the availability to control realized gains and losses through Folio’s advanced tax lot management features. There are ten different tax management strategies available for clients to choose from to help them manage the tax lots when requesting distributions within taxable accounts. Clients accounts are automatically configured to Maximize Losses and Minimize Gains. Our clients enjoy optimized Tax Gain/Loss Harvesting which can be configured by our advisors according to any of the ten tax lot methods.

For more information about Folio’s advanced tax management features, please visit their Help Center

Reporting: Information at your Fingertips

Folio Institutional provides our clients with online reporting tools, electronic statements, tax documents, and more so you can review important information about their accounts.

Privacy and Security: Keeping Your Account Safe

Account Protection and Security

Folio protects our information and our clients’ assets with proven technology, processes, and insurance. They believe in the importance of keeping our clients data secure. In addition to SSL encryption, Folio has additional security protocols in place, including second factor authentication to prevent unauthorized account access as additional security layers to keep your account secure.

FDIC Insurance

Cash deposits are insured by the Federal Deposit Insurance Corporation (FDIC)

SIPC and Supplemental Insurance

Folio Investments, Inc. is a member of the Securities Investor Protection Corporation (SIPC). A brochure explaining the coverage provided by SIPC is available on SIPC’s website at www.sipc.org. In addition to SIPC coverage, Folio has purchased from underwriters at Lloyds of London supplemental customer securities insurance. Together those coverages provide a total aggregate limit of $50 million limited to a combined return of $10 million to any single customer. Neither SIPC nor the supplemental insurance coverage protect against losses resulting from a decline in the market value of securities

For more information about InvestingCatholic please visit our website or call us at (888) 710-9800 during our office hours.  You may also contact us via email at support@investingcatholic.com