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Peak’s Investment Process

Successful wealth management is an ongoing process focused on three distinct components: Structure, Strategy and Discipline. Peak provides personalized wealth management services through individually addressing each of the components.

1. Structure

Creating and implementing structure in your financial life is the first step in successful wealth management.

Financial Planning

The financial planning process enables you to make financial decisions from a position of knowledge and purpose. Peak guides you through and assists you with:

  • Analyzing your current financial position - assets, income, expenses, insurances and estate disposition;
  • Identifying your personal objectives and constraints over a variety of time frames; and
  • Creating an individualized plan of action to meet your goals.

The Investment Policy Statement

The Investment Policy Statement (IPS) is an outcome of the financial planning process. It sets the investment parameters and is used as the benchmark in all portfolio management decisions and account reviews. Your objectives and constraints will evolve over time and the IPS will be adjusted as needed to align portfolio management decisions with your goals.

Common investment objectives include:

  • Wealth accumulation;
  • Wealth preservation;
  • Target expenditures;
  • Current income;
  • Retirement income; and
  • Gifts/bequests.

Common investment constraints include:

  • Time horizon;
  • Risk tolerance;
  • Liquidity needs;
  • Tax considerations;
  • Legal or regulatory requirements; and
  • Unique needs, preferences or circumstances.

2. Strategy

Portfolio management is the enactment of your investment objectives and constraints in the financial markets. Your individual portfolio follows your personalized asset allocation, investment objectives and risk tolerance.

Asset Allocation

Asset allocation refers to allocating the assets in your investment portfolio to selected asset classes. Appropriate asset allocation is based directly on your customized Investment Policy Statement, incorporating your investment objectives and tolerance for risk. We strategically construct portfolios to enhance total return, reduce risk and minimize costs.

Portfolio Management Strategies

Your investment portfolio can be built by investing directly in a portfolio of individual stocks and bonds, indirectly through index funds or with a combination of both individual securities and funds.

Individual Security Strategies

Stocks represent ownership in an underlying business. Our Investment Committee selects individual stocks for purchase through a rigorous fundamental screening, including both quantitative and qualitative analysis. Our individual stock model is designed to diversify risk by owning a variety of outstanding companies across a wide range of industries with stable cash flows. In general, we use a contrarian, or “out-of-favor”, approach that seeks to take advantage of short-term fluctuations in the stock market for our clients’ long-term gain. Our objective is to build you a portfolio of high-quality businesses at attractive prices.

Our fundamental analysis focuses on:

  • Owner’s earnings;
  • Operating margins;
  • Growth rates;
  • Return on equity;
  • Return on capital;
  • Debt ratios;
  • Industry position;
  • Price point;
  • Price ratios; and
  • Dividend history.

Bonds represent the debt of an underlying business or government. We select individual bonds based on financial quality, current yield, and total return characteristics. Bond maturities can be selected to meet specific time objectives or can be managed on an ongoing basis through a bond ladder that has a range of maturities.

Index Strategies

Peak Asset Management’s Index Strategies combine the benefits of index diversification with an asset allocation discipline. Your portfolio is diversified across core asset classes through index-based funds reflecting your Investment Policy Statement objectives. Once the assets have been allocated, Peak monitors the portfolio and actively rebalances when allocation levels have materially shifted.

Socially Responsible Investing

The term Socially Responsible Investing (SRI) integrates a number of factors including enviornmental, social, and governance issues that affect investment analysis and decisions. For our clients that have an interest, Peak offers the opportunity to incorporate specific SRI oriented mutual funds, ETFs, and individually screened stocks into portfolio management strategies. It is important to note that the the restrictive nature of SRI investing does represent, at some level, a trade-off between social philosophy and investment returns. For clients that decide to incorporate an SRI compoent, we seek to find an appropriate balance to meet individual overall goals and objectives.

Combining Strategies

Our Individual Security and Index Strategies provide an attractive complement
to each other and may be used in combination. Similar to the rebalancing discipline applied in our Index Strategy, once the original allocation between the strategies is determined, we apply a rebalancing discipline which takes advantage of the inherent volatility of the market.

3. Discipline

Peak is committed to making your financial assets work for you.

Ongoing management and review of your portfolio is critical to long-term success. We provide:

  • Consistency of approach;
  • Evaluation of changes in the financial marketsPortfolio management strategy execution;
  • Comprehensive quarterly reports reflecting portfolio positions, transactions and performance;
  • Regular reviews of your portfolio in relation to your Investment Policy Statement; and
  • Updating of your Investment Policy Statement for changes in your life and your goals.

We communicate with you on a regular basis through our quarterly account reports, newsletters, telephone conversations and meetings. From our perspective, the better we communicate the better job we can do for you.

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