Overview
Firm Description
Pinnacle West Asset Management, Inc. a Wyoming Corporation is an investment
management and research firm located in Casper Wyoming. The firm was founded
October 1, 1991 and is a successor to a business started by Tom R. Creager in 1988. The
firm was founded to fulfill the needs of long-term investors. The firm is a regulated
investment advisory firm subject to the rules and regulation of the Investment Advisors Act
of 1940, administered by the Securities and Exchange Commission.
Principal Owners
Its principal owners are Tom R. Creager and Roger W. Wesnitzer.
Types of Advisory Services
Pinnacle West Asset Management, Inc’s. commitment is to provide a disciplined and
systematic approach toward the investment process to achieve the highest risk adjusted
return possible within defined investment objectives. The firm creates custom designed
investment portfolios to meet specific client investment goals and objectives. Client
portfolios are individually managed in keeping with each client’s stated investment goals,
objectives, and income tax strategies within the overall parameters of our investment
philosophy.
The basis for which we manage each of our client’s investment portfolios begins with an
asset allocation model. We believe proper asset allocation is critical to the investment
process and the effective management of portfolio risk. We are available to assist with the
development of an asset allocation model if requested. Many times, we are provided with
a predetermined asset allocation model from the client’s financial advisor. We firmly
believe once the asset allocation is determined and agreed upon it should stay constant over
the short-term but evolve over the long-term. The asset allocation model should not change
to respond to the market environment in the short-term, but rather evolve over the long-
term as client’s needs and risk tolerance changes.
Generally, the asset allocation model will broadly require that a certain percentage or range
of the investment assets be allocated among cash and cash equivalents, fixed income
securities, equity income securities and equity securities. Cash and cash equivalents are
often readily liquid money market or bank deposit accounts. Fixed income securities often
include corporate debt securities, government debt securities, and municipal debt
securities. Equity income securities often include preferred stock, index securities, real
estate investment trusts and publicly traded partnerships. Equity securities often include
large capitalization stocks, small capitalization stock index securities, mid capitalization
stock index securities, developed foreign country index securities, and foreign emerging
market index securities.
Pinnacle West Asset Management, Inc. does not utilize leverage or margin for the
management of our portfolios. However, a client may utilize margin (client directed) to
borrow against their account. If so, Pinnacle will bill on managed portfolio assets without
regard to the amount borrowed.
Pinnacle West Asset Management, Inc. has full
discretionary trading authority over each
client’s account. Clients are not allowed to impose any restrictions on investing in certain
securities or types of securities.
Our investment philosophy is the disciplined long-term management of risk to preserve and
grow investment capital. We believe superior risk adjusted returns can be achieved over
the long-term with proper diversification. Our philosophy is grounded on the basis of
buying and holding investment securities over the long-term. Our definition of long-term
for equity securities is often measured in a lifetime. We do not believe market timing can
be a successful long-term approach to the investment process. Our philosophy does not
include short-term trading or thinking. The fixed income portion of the portfolio will often
consist of a laddered portfolio not exceeding ten years in maturity. We do not select fixed
income securities for trading purposes we tend toward holding them until they mature and
collecting the interest income.
At the outset of our relationship with each client in consultation with the client we develop
and agree on a memorandum of understanding that outlines the assumptions and
understandings governing the management of the investment portfolio.
Wrap Fee Programs
Pinnacle West Asset Management, Inc. does not participate in wrap fee programs of any type.
Client Assets
As of December 31, 2022, Client assets under management were approximately $168.3
million, all of which it managed on a discretionary basis.
Fees & Compensation
Description
All fees charged by Pinnacle West Asset Management, Inc. are calculated on an annual
basis. The fees are billed quarterly in arrears. The fee is calculated based on the end of
quarter valuation. Fees are prorated for any period less than a full quarter.
Minimum fee charged per household $100.00
Cash and cash equivalents .25%
Fixed income securities .25%
Equity securities 1.00%
Equity income securities 1.00%
Exchange traded index shares .50%
Mutual funds .50%
Other Fees
The fees charged for mutual funds and exchange traded index shares do not include any
fees charged directly by the fund or index shares. The fees charged do not include any
transaction costs, or handling fees charged by the custodial firm handling the account. The
fees do not include any charges by trustees if the assets are held by a corporate trustee.
Fees may be negotiable on larger accounts.
Fee Billing
Fees are deducted directly from client assets after the end of each quarter unless other
arrangements are agreed to. A copy of the invoice showing the calculation of the fees is
included with our quarterly reporting to clients.
Fees Paid in Advance
Fees for our services are not charged in advance.
Additional Compensation
Pinnacle West Asset Management, Inc. does not receive any other forms of compensation
related to client assets.
Performance-Based Fees & Side-by-Side Management
Pinnacle West Asset Management, Inc. does not receive performance-based fees of any type.