Investment Process

Investment Process

Getting To Know You
At Mench Financial, Inc. investment management is a relationship and a process - not a product. This relationship begins with an in-depth analysis that assists us in evaluating your financial goals and attitudes. It helps us identify your priorities concerning:

  • your objectives, needs and resources,
  • your income preferences before and after retirement,
  • your level of comfort with financial risk,
  • how your portfolio fits into your "big picture", and
  • the rate of return you'll need to achieve your goals

This risk tolerance analysis enables you to be more precise about matching your investments to your objectives. We believe that being comfortable with the risk level of your portfolio is just as important as striving for above average returns.

As your priorities change, your portfolio can also change to reflect your new needs. For pension and profit sharing plans, we help develop an investment policy statement to ensure you to meet ERISA-mandated standards.

Develop A Sound Financial Strategy
Once we know you better, we will present you with an investment strategy that is structured to help meet your unique needs and objectives. We do this with a process called asset allocation. This process is based on numerous academic studies which have proven that the actual mixture of your assets will have much more of an effect on total return than the individual securities themselves.

Our asset allocation model uses extensive data concerning absolute and relative valuation, plus the absolute and relative price movement of asset classes and sectors. Asset classes and sectors could include such categories as domestic large, medium, small and international equity indices, government bonds, cash, and other specific areas.

Implement The Strategy & Monitor Results
Mench Financial, Inc. will present to you an investment strategy that is structured to help you meet your objectives. The type and complexity of the strategy will vary with your individual needs. We will work with you - not only to implement your investment strategy, but will also periodically review and revise the strategy with you. As your needs, objectives and financial condition changes, you can be assured that your Mench advisor will be with you every step of the way.

Our Investment Policy
The key to our success is an econometric investment process that reacts to, and participates in, market trends. A composite of indicators triggers portfolio purchases and sales in a highly disciplined manner. We believe 75% of our ability to outperform the market comes from this process of dynamic asset allocation.

During weekly Investment Policy Committee meetings current portfolio, market, sector and industry allocations are determined. These allocations allow us to decrease the volatility in a portfolio by pinpointing the markets, or sectors of a market, which we believe have the greatest potential for outperforming the general market. In turn, assets are moved away from sectors which have a high probability of underperforming.

Once we have identified those industries which are poised to do well in the coming economic environment, we use fundamental and technical equity analysis, combined with broad diversification, to shift the risk/reward ratio in our clients favor.

Keeping You Informed
You will receive monthly account statements from an independent broker-dealer company that maintains custody of your investments. We will prepare more detailed portfolio analyses for delivery to you on a quarterly basis. More individualized reports are created for regular meetings.

These frequent consultations add significant value to the relationship. This provides a regular opportunity to review your "big picture" and make strategic planning recommendations about other areas of your financial life.

If changes need to be made in your portfolio prior to your regular consultation, we'll contact you sooner. Meanwhile, you are always welcome to call your Mench advisor at no additional charge to discuss any financial questions you may have.

What Kind of Accounts Are Suitable?
Our fee-based compensation and objectivity make this service ideal for individuals, retirement plans, trust funds, charitable remainder trusts, and fiduciaries with a minimum portfolio of $50,000.

What About Fees?
When you consider the other financial advice we provide in the process, our fees are extremely competitive. This is especially true when compared to wrap accounts, trust departments and private money managers. The fee is based only on your account size, minimizing conflicts of interest and transaction costs. It also gives us an added incentive to make your portfolio grow. Our annual fee will be contractually agreed upon in advance.