A. Firm Description:
Pinnacle Asset Management Group, Inc., ("Pinnacle Asset Management Group") was founded in
1996. On January 1, 2018, Pinnacle Asset Management Group transitioned from a Limited Liability
Company (LLC) to a Corporation (Inc.)
Pinnacle Asset Management Group provides personalized confidential financial planning and
investment management to individuals, pension and profit sharing plans, trusts, estates, charitable
organizations and small businesses. Advice is provided through consultation with the client and may
include: determination of financial objectives, identification of financial problems, cash flow
management, tax planning, insurance review, investment management, education funding, retirement
planning, and estate planning.
Investment advice is an integral part of financial planning. In addition, Pinnacle Asset Management
Group advises clients regarding cash flow, college planning, retirement planning, tax planning and
estate planning.
Investment advice is provided, with the client making the final decision on investment selection.
Pinnacle Asset Management Group does not act as a custodian of client assets. The client always
makes decisions and always maintains control of over assets.
A written evaluation of each client's initial situation is provided to the client, often in the form of a net
worth statement. Periodic reviews are also communicated to provide reminders of the specific
courses of action that need to be taken. More frequent reviews occur but are not necessarily
communicated to the client unless immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged directly by the
client on an as-needed basis. Conflicts of interest will be disclosed to the client in the unlikely event
they should occur.
The initial meeting is free of charge and is considered an exploratory interview to determine the extent
to which financial planning and investment management may be beneficial to the client.
B. Principal Owners:
Diana DeCharles is 80% stockholder.
Christina DeCharles is 20% stockholder.
C. Types of Advisory Services:
Pinnacle Asset Management Group provides investment supervisory services, also known as asset
management services; manages investment advisory accounts not involving investment supervisory
services; furnishes investment advice through consultations; issues periodicals about securities by
subscription; issues special reports about securities; and issues, charts, graphs, formulas, or other
devices which clients may use to evaluate securities.
On more than an occasional basis, Pinnacle Asset Management Group furnishes advice to clients on
matters not involving securities, such as financial planning matters, taxation issues, and trust services
that often include estate planning.
Assets are invested primarily in no-load or low-load mutual funds and exchange-traded funds, usually
through discount brokers or fund companies. Fund companies charge each fund shareholder an
investment management fee that is disclosed in the fund prospectus. Discount brokerages may
charge a transaction fee for the purchase of some funds.
Stocks and bonds may be purchased or sold through a brokerage account when appropriate. The
brokerage firm charges a fee for stock and bond trades. Pinnacle Asset Management Group does not
receive any compensation, in any form from fund companies.
Investments may also include: equities (stocks), warrants, corporate debt securities, structured
products, UITs, REITs, commercial paper, certificates of deposit, municipal securities, investment
company securities (variable life insurance, variable annuities, and mutual funds shares), U. S.
government securities, options contracts, futures contracts, and interests in partnerships. Initial public
offerings (IPOs) are not available through Pinnacle Asset Management Group.
a. VISION2020 Wealth Management Platform -Advisor Managed Portfolios Program:
The Wealth Management Platform - Advisor Managed Portfolios Program ("Advisor Managed
Portfolios") provides comprehensive investment management of your assets through the application
of asset allocation planning software as well as the provision of execution, clearing and custodial
services through Pershing, LLC ("Pershing").
Advisor Managed Portfolios provides risk tolerance assessment, efficient frontier plotting, fund
profiling and performance data, and portfolio optimization and re-balancing tools. Utilizing these tools,
and based on your responses to a risk tolerance questionnaire ("Questionnaire") and/or discussions
that we have together regarding among other things, investment objective, risk tolerance, investment
time horizon, account restrictions, and overall financial situation, we construct a portfolio of
investments for you.
This portfolio may consist of mutual funds, exchange traded funds, equities, options, debt securities,
variable life, and/or variable annuity sub-accounts (certain restrictions may apply) or other
investments. Each portfolio is designed to meet your individual needs, stated goals and objectives.
Additionally, you have the opportunity to place reasonable restrictions on the types of investments to
be held in the portfolio.
For further Advisor Managed Portfolios details, please see the Advisor Managed Portfolios
Wrap Fee Program Brochure. We provide this brochure to you prior to or concurrent with your
enrollment in Advisor Managed Portfolios. Please read it thoroughly before investing.
b. VISION2020 Wealth Management Platform - Model Portfolios Program:
The Wealth Management Platform - Model Portfolios Program ("Model Program") offers Clients
managed asset allocation models ("Asset Allocation Models") of mutual funds or exchange traded
funds ("ETFs") diversified across various investment styles and strategies. The Asset Allocation
Models are constructed by managers ("Program Managers") such as Russell Investment
Management Company, ICON Advisers, Inc. and Morningstar Associates, LLC.
Based upon the risk tolerance of each Client, the Model Program utilizes a system that selects a
specific Asset Allocation Model which may contain either: 1) a combination of mutual funds, or 2) a
combination of exchange traded funds ("ETFs") depending on which Program Manager is used.
Together, we will select a recommended Asset Allocation Model. After the Asset Allocation Model is
chosen, we, with the assistance of the Model Program sponsor, will open a Model Program account.
Your assets will be invested in the specific investments contained within the recommended Asset
Allocation Model. You have the opportunity to place reasonable restrictions on investments held
within the Model Program account.
For further Model Program details, including a full list of Program Managers, please see the
Model Program Wrap Fee Program Brochure. We provide this brochure to you prior to or
concurrent with your enrollment in the Model Program. Please read it thoroughly before
investing.
c. VISION2020 Wealth Management Platform - SMA and UMA Program:
The Wealth Management Platform - SMA and UMA Account Program ("Wealth Managed Account
Program" or "WMAP") provides you with the opportunity to invest your assets across multiple
investment strategies and asset classes by implementing an asset allocation strategy. WMAP is a
Wrap Account program that offers these advisory services along with brokerage and custodial
services for a single, annual, asset-based advisory fee.
We will present you with a WMAP asset allocation model ("WMAP Model") for your approval which will
consist of: 1) third party money managers ("WMAP Managers") who will manage your WMAP
account according to a particular equity or fixed income model or strategy, or 2) no-load mutual funds
("Funds"), or 3) exchange traded funds ("ETFs") or any combination thereof (individually or
collectively, "WMAP Investments"). WMAP Investments will be managed according to the selected
WMAP Model. WMAP Investments are held within a separately managed account, or a series of
separately managed accounts (collectively, "SMA Account"), or in one unified managed account
("UMA Account").
We will suggest a WMAP Model to you based on your responses to a risk tolerance questionnaire
("Questionnaire") and discussion that we have together regarding among other things, investment
objective, risk tolerance, investment time horizon, account restrictions,
and overall financial situation.
In addition, you have the opportunity to place reasonable restrictions on investments held within your
WMAP account.
For further WMAP details please see the WMAP Wrap Fee Program Brochure. We provide this
brochure to you prior to or concurrent with your enrollment in WMAP. Please read it
thoroughly before investing.
d. Third Party Advisory Services:
We offer our clients the services of various third-party investment advisors ("Third-Party Advisory
Services") for the provision of certain investment advisory programs including mutual fund wrap and
separately managed account programs.
If you are interested in learning more about any of these services, please note that a complete
description of the programs, services, fees and payment structure, and termination features is
available via the applicable Third-Party Advisory Service's disclosure brochures, investment advisory
contracts, and account opening documents.
In connection with these arrangements, we will provide assistance in the selection and ongoing
monitoring of a particular Third-Party Advisory Service. Factors that we consider in the selection of a
particular third-party advisor may include but may not be limited to: 1) our assessment of a particular
Third-Party Advisory Service, 2) your risk tolerance, goals, objectives and restrictions, as well as
investment experience and, 3) the assets you have available for investment.
You should know that the services provided by us through the use of Third-Party Advisory Services
are under certain conditions directly offered by them to you. The fees charged by Third-Party
Advisory Services who offer their programs directly to you may be more or less than the combined
fees charged by the Third-Party Advisory Service and us for our participation in the investment
programs. However, when using the services of Third-Party Advisory Services directly, you do not
receive our expertise in developing an investment strategy, selecting a Third-Party Advisory Service,
monitoring the performance of your account and changing a Third-Party Advisory Service provider
when appropriate.
e. Financial Planning:
We provide a variety of financial planning services regarding the management of your financial
resources, based upon an analysis of your needs. Generally, such financial planning services will
involve preparing a financial program based on your financial circumstances and objectives. This
information typically covers present and anticipated assets and liabilities, including insurance,
savings, investments and anticipated retirement or other employee benefits.
Our financial planning typically includes general recommendations for a course of action or specific
actions that you should take. For example, recommendations may be made that the client obtain
insurance or revise existing coverage, establish an individual retirement account, increase or
decrease funds held in savings accounts or to invest funds in certain securities.
Other financial planning services that we may provide include ongoing financial counseling, account
review, securities research and other advisory services related to investments.
Financial planning services to be provided to you will be outlined on the client agreement that you sign
with us.
D. Tailored Relationships:
The goals and objectives for each client are documented in our client relationship management
system. Investment policy statements are created that reflect the stated goals and objective. Clients
may impose restrictions on investing in certain securities or types of securities. Agreements may not
be assigned without client consent.
E. Types of Agreements:
a. Financial Planning Agreement - A financial plan is designed to help the client with all
aspects of financial planning without ongoing investment management after the financial plan is
completed.
The financial plan may include, but is not limited to: a net worth statement; a cash flow statement; a
review of investment accounts, including reviewing asset allocation and providing repositioning
recommendations; strategic tax planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for changes, if necessary;
one or more retirement scenarios; estate planning review and recommendations; and education
planning with funding recommendations.
Detailed investment advice and specific recommendations are provided as part of a
financial plan. Implementation of the recommendations is at the discretion of the client.
The fee for a financial plan is predicated upon the facts known at the start of the engagement. The
minimum fee is $150 per hour. Since financial planning is a discovery process, situations occur
wherein the client is unaware of certain financial exposures or predicaments.
In the event that the client's situation is substantially different than disclosed at the initial meeting, a
revised fee will be provided for mutual agreement. The client must approve the change of scope in
advance of the additional work being performed when a fee increase is necessary.
After delivery of a financial plan, future face-to-face meetings may be scheduled as necessary.
Follow-on implementation work is billed separately at the rate of $175 per hour.
b. Advisory Service Agreement - Most clients choose to have Pinnacle Asset Management
Group manage their assets in order to obtain ongoing in-depth advice and life planning. All aspects of
the client's financial affairs are reviewed, including those of their children. Realistic and measurable
goals are set and objectives to reach those goals are defined. As goals and objectives change over
time, suggestions are made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to the client in writing prior
to the start of the relationship. An Advisory Service Agreement includes: cash flow management;
insurance review; investment management (including performance reporting); education planning;
retirement planning; estate planning; and tax preparation, as well as the implementation of
recommendations within each area.
The annual Advisory Service Agreement fee is based on a percentage of the investable assets
according to the following schedule:
1.00% on the first $500,000
0.75% on the next $500,000 (from $500,001 to $1,000,000)
0.65% on the next $1,000,000 (from $1,000,001 to
$2,000,000)
0.55% on the next $3,000,000 (from $2,000,001 to
$5,000,000)
Above $5,000,001 it is negotiable.
The minimum annual fee is $1,000. Current client relationships may exist where the fees are higher
or lower than the fee schedule above. Although the Advisory Service Agreement is an ongoing
agreement and constant adjustments are required, the length of service to the client is at the client's
discretion. The client or the investment manager may terminate an Agreement by written notice to the
other party. At termination, fees will be billed on a pro rata basis for the portion of the quarter
completed. The portfolio value at the completion of the prior full billing quarter is used as the basis for
the fee computation, adjusted for the number of days during the billing quarter prior to termination.
F. Hourly Planning Engagements:
Pinnacle Asset Management Group provides hourly planning services for clients who need advice on
a limited scope of work. The hourly rate for limited scope engagements is $175.
G. Asset Management:
As of December 31, 2023, Pinnacle Asset Management Group manages $8,961,062 in discretionary
assets under management and $102,712,253 in non-discretionary assets under management for a
total of $111,673,315 in assets under management.
H. Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by notifying Pinnacle Asset
Management Group in writing and paying the rate for the time spent on the investment advisory
engagement prior to notification of termination. If the client made an advance payment, Pinnacle
Asset Management Group will refund any unearned portion of the advance payment. Pinnacle Asset
Management Group may terminate any of the aforementioned agreements at any time by notifying the
client in writing. If the client made an advance payment, Pinnacle Asset Management Group will
refund any unearned portion of the advance payment.