Philosophy & Process

The Sentinel

Long-term investment success requires vigilance to guard against potential dangers and mitigate risk.

At MV Financial, risk management is at the heart of our investment activities and underlies our strategic diversification decisions around defined long-term portfolio goals. Our thorough due diligence processes, market and portfolio monitoring, and repositioning and rebalancing are designed to help you reach your goals within prudent risk parameters.

Risk Management Process

Due Diligence

Before any asset is approved for inclusion in our portfolios, it is subjected to a rigorous due diligence process. Our analysts review asset performance according to a wide range of risk, return, and correlation metrics. For pooled, professionally-managed assets like mutual funds and managed accounts, we examine the management team and conduct in-depth interviews, both before selection and on an ongoing basis once the fund has been approved. We look for evidence of regulatory and legal violations, along with anything else that would potentially fall short of our selection standards.

Market & Portfolio Monitoring

We study the markets every day: including asset trends, macroeconomic data feeds, and the stream of corporate earnings and sales reports. Concurrently, we also monitor and evaluate the potential impact of market developments on your portfolio. Our investment committee meets on a weekly basis to assess conditions and make decisions across our different asset and portfolio strategies. Additionally, our client service team is always available to assist with any issues or concerns you may have.

Repositioning & Rebalancing

We continuously revisit, challenge, and test our assumptions to validate their contribution to portfolio decisions. Each year we perform a strategic rebalancing of your portfolio’s asset class weights, making whatever changes have been incorporated into our new policy models. We also rebalance periodically throughout the year in coordination with our tactical allocation decisions. Our rebalancing is designed to keep asset class weights in line with strategic targets and to prevent decisions based on fear and greed.