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PEAK FUND MANAGEMENT FAQ’s

1. Q: How do I know if my mutual funds have any costs I might not be aware of?

A: Many mutual funds have costs that many investors are may not be aware of. They are called 12B-1 fees that are paid to a broker. They are paid in addition to any upfront commissions.

Fees range from .25% to 1% per year. They are stated in the fund’s prospectus.

The fees are paid for ongoing client service and additional value the broker or advisor may or may not provide to the client. The Fund charges investors 12B-1 fees as part of its management fee.

2. Q: How will I know if the money managers of one of my mutual funds leaves and a new manager takes over?

A: Any management changes are outlined in the fund prospectus or on the front page of the new prospectus. You can also check Yahoo Financial, Morningstar or another financial website or periodical.

3. Q: Why is it important to me when a money manager leaves?

A: Fund management is important in the decision to invest in a fund. Changes in the fund management could negatively impact future performance

4. Q: How do I know how risky my mutual funds are?

A: You can compare your fund risk rating or “Beta” to the S&P 500 which has a “Beta” of “1”. (Beta is a measure of a particular stock’s volatility in relation to the entire stock market, or S&P 500. The Beta for the S&P 500 is 1.0. A stock with a Beta less than 1 means its generally less volatile, whereas a stock with a Beta greater than 1 is generally more volatile than the S&P 500, and therefore has more risk).

5. Q: What is an asset class?

A: An asset class is a means of classifying a security by a specific market segment that it represents. Mutual funds can adopt investment strategies focusing on a given market segment. For instance, below are examples of mutual funds that represent a certain asset class by reason of the market segment securities they own.

  • Large Cap growth
  • Mid Cap growth
  • Small Cap growth
  • Large Cap value
  • Mid Cap value
  • Small Cap value
 6. Q: Why is having a blend of asset classes important?

A: It is important to have the appropriate blend of asset classes to diversify your domestic and International fund portfolio. At different times, one asset class may out- perform another based on various economic or financial information.

7. Q: If I have a good mutual fund, should I hold it indefinitely?

A: Not necessarily. With management turnover and changes in asset classes or fees, the fund needs to be monitored daily.

8. Q: Why is PEAK Fund Management good for my portfolio?
  • PEAK is all No Load, low expense funds
  • PEAK is generally 8 to 12 Mutual Funds that are High Quality mutual funds.
  • PEAK’s model chooses from all mutual funds available
  • PEAK's goal is to approximate the same risk as the S&P 500. PEAK uses the five year “beta” of the S&P 500as shown on the Yahoo Finance. Beta is a measure of a particular stock’s volatility in relation to the entire stock market, namely the S & P 500. The Beta for the S&P 500 is 1.0. A stock with a Beta of less than 1 is generally less volatile, whereas a stock with a Beta greater than 1 is generally more volatile than the S&P 500, and therefore has more risk.
  • PEAK monitors the fund for management changes. We monitor the status of the management, and if we notice a change, we may decide to liquidate the holding because of uncertainty about future fund management.
  • PEAK Funds have performed as follows after fees and expenses: 1
    YEAR PEAK S&P 500
    2003 26.33% 28.62%
    2004 13.21% 10.88%
    20055.25%4.81%
    200615.77%15.72%
    200723.85%5.48%
    2008-47.25%-37.03%
  • PEAK diversifies among several asset classes
    • Large cap value and growth
    • Mid cap value and growth
    • Small cap value and growth
    • International Funds
    • Sector funds that perform well based on the economic cycle (i.e. Real Estate and Energy funds the past few years)
  •  
  • PEAK is managed daily by Horter Investment Management, a Registered Investment Advisor

9. Q: How often do I get PEAK Reports?

A: PEAK Fund investment information is provided to its clients in one of two ways; with monthly statements from Pershing, our clearing firm. Horter Investment Management sends performance reports with the clients’ quarterly billing.

10. Q: Can I see my account on-line?

A: Yes, Pershing, LLC allows you to access account information at any time using the Internet and your access code.

11. Q: How much does Horter Investment Management charge to manage my portfolio?

A: Horter Investment Management charges 1 to 2% per year depending upon the size of the investment portfolio.

12. Q: Who is Pershing?

A: Pershing, LLC is a clearing firm for the PEAK mutual fund purchases and redemptions. Pershing, LLC is owned by the Bank of New York Mellon Corporation.

13. Q: How long has Horter Investment Management managed money?

A: Horter Investment Management (previously Horter Asset Management) has been managing assets for clients since 1991.

14. Q: How can I find out more about Horter Investment Management?

A: The firm can send you its ADV II Brochure and its Privacy Notice .

15. Q: Do I receive confirmations on activity in my account?

A: Any time there is a buy or sell in your account, it will generate a confirmation to you.

1 Results may vary.
Past performance is no guarantee of future results.
Investors can lose money