Description of Services and Fees
Pinnacle Family Advisors is a registered investment adviser based in Springfield, Missouri. We are
organized as a limited liability company under the laws of the State of Missouri. We have been
providing investment advisory services since 2007. R. Sean McCurry, is our President, Managing
Member, and is the largest shareholder of our firm. Currently, we offer the following investment
advisory services, which are personalized to each individual client:
•Asset Management Services
•Family Office and Wealth Planning Services
•Investment Company Advisory Services
•Sub-advisory Services
•Selection of Other Advisers
•Pension Consulting Services
•Financial Planning and Consulting Services
•AdvisorK - Retirement Asset Management
•Newsletter Subscription Service
The following paragraphs describe our services and fees. Please refer to the description of each
investment advisory service listed below for information on how we tailor our advisory services to your
individual needs. As used in this brochure, the words "we," "our" and "us" refer to Pinnacle Family
Advisors and the words "you," "your" and "client" refer to you as either a client or prospective client of
our firm. Also, you may see the term Associated Person or Investment Adviser Representative
throughout this brochure. As used in this brochure, our Associated Persons or Investment Adviser
Representatives are our firm's officers, employees, and all individuals providing investment advice on
behalf of our firm.
Asset Management Services
We offer discretionary and, in limited cases, non-discretionary asset management services. Our
investment advice is tailored to meet your needs and investment objectives. If you retain our firm for
asset management services, we will meet with you to determine your investment objectives, risk
tolerance, and other relevant information (the "suitability information") at the beginning of our advisory
relationship. We will use the suitability information we gather to develop a strategy that enables us to
give you continuous and focused investment advice and/or to make investments on your behalf. As
part of our asset management services, we may customize an investment portfolio for you in
accordance with your risk tolerance and investing objectives. Once we construct an investment
portfolio for you, we will monitor your portfolio's performance on an ongoing basis and will reallocate
the portfolio as required by changes in market conditions and in your financial circumstances.
If you participate in our discretionary asset management services, we require you to grant our firm
discretionary authority to manage your account. Discretionary authorization will allow our firm to
determine the specific securities, and the amount of securities, to be purchased or sold for your
account without your approval prior to each transaction. Discretionary authority is typically granted by
the investment advisory agreement you sign with our firm, a power of attorney, or trading authorization
forms. You may limit our discretionary authority (for example, limiting the types of securities that can be
purchased for your account) by providing our firm with your restrictions and guidelines in writing. If you
enter into non-discretionary arrangements with our firm, we must obtain your approval prior to
executing any transactions on behalf of your account.
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As part of our portfolio management services, in addition to other types of investments (see
disclosures below in this section), we may invest your assets according to one or more
model portfolios developed by our firm or third party investment advisers. These models are designed
for investors with varying degrees of risk tolerance ranging from a more aggressive investment
strategy to a more conservative investment approach. Clients whose assets are invested in model
portfolios may not set restrictions on the specific holdings or allocations within the model, nor the types
of securities that can be purchased in the model. Nonetheless, clients may impose restrictions
on investing in certain securities or types of securities in their account. In such cases, this may prevent
a client from investing in certain models that are managed by our firm.
Our fee for asset management services is based on a percentage of your assets we manage and is
negotiable. Our maximum annual fee is 2.0%. Asset management fees are billed and payable quarterly
in advance based on the value of your account on the last day of the previous quarter. If the asset
management agreement is executed at any time other than the first day of a calendar quarter, our fees
will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the number
of days in the quarter for which you are a client.
At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. This authorization is contained within our
discretionary investment management agreement. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy. We will also receive a duplicate
copy of your account statements. In limited circumstances, we will send you an invoice for the payment
of our advisory fee. Fees will be payable as invoiced in such cases.
You may terminate the asset management agreement within five days from the date of acceptance
without penalty. After the five-day period, either you or our firm may terminate the asset management
agreement upon written notice to the other party. You will incur a pro rata charge for services
rendered prior to the termination of the agreement, which means you will incur advisory fees only in
proportion to the number of days in the quarter for which you are a client. If you have pre-paid advisory
fees that we have not yet earned, you will receive a prorated refund of those fees.
After the initial inception quarter, if assets are deposited to or withdrawn from an account after the
inception of a quarter the Management Fee payable with respect to the assets will NOT be prorated
based on the number of days remaining in the quarter.
We encourage you to reconcile any invoices you may receive from us with the statement(s) you
receive from the qualified custodian. If you find any inconsistent information between our invoice and
the statement, you receive from the qualified custodian please call our main office number located on
the cover page of this brochure.
Family Office and Wealth Planning Services
We offer Family Office and Wealth Planning Services designed to help our clients organize their
financial situation and plan for the successful transfer of wealth to the next generation. Such services
generally include the following areas:
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•Discretionary Asset Management
•Family Continuity
•Estate Planning and Trustee Oversight (not providing legal advice)
•Integrated Tax and Financial Planning (not providing tax advice)
•Lifestyle Management
•Family Philanthropy
•Risk Management
We charge an annual fixed fee ranging from approximately $10,000 to $600,000 which is payable
quarterly in advance for Family Office and Wealth Planning Services based on the complexity of your
financial situation. We do not have a minimum investment account size. Factors considered in setting
the client fee include but are not limited to, number of household members, amount of financial
planning/consulting required, number and type of accounts, net worth, life stage, business interests,
real estate ownership, trust arrangements, etc. Clients who benefit from our fee structure tend to be
people with higher net worth and/or complicated planning needs. Fees may be assessed pro rata in
the event the agreed upon annual services commence subsequent to the first day of a calendar
quarter. We will either invoice you directly for continuing services or payment of fees will be deducted
by the qualified, independent custodian holding your funds and securities.
Fees may be negotiable and we reserve the right to decline situations which we consider not
complicated enough to warrant our minimum fee. Alternatively, we may agree to negotiate a lower fee
for such simpler situations.
Due to the detailed nature of the work we do for clients, our fees for Family Office and Wealth Planning
Services depend on the scope and complexity of those services. As such, our fees may be lower or
higher than those charged by other investment advisors for similar services. We may provide account
services for members of current client households or their families. When we expect to provide short-
term or one-off planning or account services, we may complete them without additional fees. In
situations where we expect our services to be long-term and ongoing, we may include this complexity
in setting the client fee.
You may terminate the family office and wealth planning services agreement upon written notice to our
firm. You will incur a pro rata charge for services rendered prior to the termination of the agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.
Investment Company Advisory Services
We serve as the investment adviser to the following registered investment companies (Mutual Funds
and Exchange Traded Funds ("ETF"s)).
Pinnacle Multi-Strategy Core Fund. The investment objective of Pinnacle Multi-Strategy Core Fund is
to seek high total return with reasonable risk by investing, under normal market conditions,
in exchange traded funds (ETFs) that may invest in all major asset classes, including, but not limited
to, foreign and domestic (i) equity securities of all market capitalizations; (ii) fixed income securities of
any credit quality; and (iii) cash. Pinnacle Sherman Multi-Strategy Core Fund intends to generally
invest in a mix of asset classes. Pinnacle Sherman Multi-Strategy Core Fund may also invest in cash
directly. The foreign securities held by the underlying ETFs may include those in emerging markets.
As the Adviser to the fund, we use our proprietary risk management signals to determine the Fund's
equity, fixed income, and/or cash allocations. The process follows these general steps: (1) the
expected market trend for equity securities over a period is examined; (2) if equities are trending
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upward for the applicable period based on the market indicator, the assets allocated based on that
particular signal are invested in equities based on the relative strength rankings of a limited number of
asset classes and sectors; and (3) if equities are trending downward based on the market indicator, the
assets allocated based on that particular management signal are primarily invested in fixed income
securities or cash as dictated by the applicable risk management signal. The Fund actively trades its
portfolio investments.
Pinnacle Focused Opportunities ETF (FCUS)
The Fund is an actively managed exchange-traded fund ("ETF") that seeks to achieve its investment
objective primarily by investing in a focused portfolio of U.S. equity securities. The Fund's investment
sub-adviser, Pinnacle Family Advisors, LLC ("Pinnacle" or the "Sub-Adviser"), will typically seek full
equity exposure during periods of market strength and will seek to identify periods of market stress and
to mitigate risk during these periods by increasing the portfolio's exposure to U.S. Treasury securities,
cash, cash equivalents, or bond index ETFs. Pinnacle manages the Fund's portfolio based on its
proprietary model. The Fund's initial universe of stocks is comprised of the largest 1,000 U.S. equity
securities listed on major U.S. stock exchanges. As of the date of this prospectus, the market
capitalization range for the initial universe of securities is between approximately $4.1 B and $2.1 T. To
be eligible for inclusion in the Fund's portfolio, stocks must also have a closing price of at least $1, with
a freefloat (shares publicly available for purchase on the stock market) of at least five percent of the
shares outstanding. The Fund's portfolio excludes certain equity securities, such as limited
partnerships, closed-end investment companies, and warrants. The complete list of excluded security
types is set forth below. Pinnacle uses its monthly stock selection model to identify 30 stocks to include
in the model (as described below). In addition, Pinnacle uses two separate Market Risk Algorithms to
identify whether there are positive or negative market signals which may impact the composition of the
Fund's portfolio. On the first trading day of each month (or more frequently intra-month if a market
signal changes), Pinnacle will recommend that the Fund's portfolio be reconstituted based on whether
the Algorithms both show market signals as positive, one as positive and one as negative, or both as
negative.
We may recommend investments in the Mutual Funds or ETF for other advisory client accounts,
including accounts for owners, officers, and investment adviser representatives associated with our
firm. If you have engaged us for discretionary management services, we may invest a percentage of
your assets in the Mutual Funds or ETF without further approval from you. Because we receive
compensation from the Mutual Funds and ETF, we have a financial incentive to invest client assets in
the Mutual Funds and ETF or to recommend that clients invest in the Mutual Funds or ETF. However,
we will only make such investments and/or recommendations where we believe it is consistent with our
fiduciary duty and your investment objectives. We will earn fees from the Mutual Funds or ETF and
fees from you for investments made in the Mutual Funds or ETF. For ERISA assets invested in the
Mutual Funds or ETF, the advisory fee on such assets will be offset by the amount of the
management
fee paid to us by the Mutual Funds or ETF. At our discretion, we may offset a portion of your advisory
fee against the fees and expenses you may otherwise pay to the Mutual Funds or ETFs.
You should refer to the prospectus for a complete description of the fees, investment objectives, risks
and other relevant information associated with investing in the Mutual Funds or ETF. Securities held in
separate accounts, including accounts for owners, officers, and other individuals associated with our
firm may also be the same securities as those purchased by the Mutual Funds or ETF.
Sub-advisory Services
We offer sub-advisory services to unaffiliated third party investment advisers (the "Primary Investment
Adviser"). As part of these services, we will manage assets delegated to our firm by the Primary
Investment Adviser. While we are responsible for the overall management of the assets delegated to
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our firm, we will not communicate investment recommendations or selections directly to the Primary
Investment Adviser's individual clients. Fees and payment arrangements are negotiable and will vary
on a case-by-case basis.
Selection of Other Advisers
We may recommend that you utilize the services of a third party investment adviser ("TPA") to manage
a portion of, or your entire portfolio. After gathering information about your financial situation and
objectives, an associated person of our firm may recommend a TPA or investment program based on,
but not limited to, performance, methods of analysis and fees of the TPA, your financial needs,
investment goals, risk tolerance, and investment objectives. We will periodically monitor the
performance of the TPA(s) to ensure their performance and investment style remains aligned with your
investment goals and objectives.
The TPA(s) will actively manage your portfolio and will assume investment discretionary and trading
authority over the managed account. We will assume discretionary authority to hire and fire TPA(s)
and/or reallocate your assets to other TPA(s) where such action is deemed to be in your best interest.
Any fees paid by you to a TPA are separate and distinct from the fees you pay us. TPA fees are
established and payable in accordance with the Form ADV Part 2 or other equivalent disclosure
document provided by each TPA to whom we may refer you, such fees may or may not be negotiable
and may differ depending on the individual TPA selected. These disclosures will be set forth in the
disclosure documents of relevant TPAs. Our fees are calculated and payable in accordance with the
previously stated terms of our Asset Management Services. Alternatively, we share in the advisory
fees charged by some TPAs and we do not share in the advisory fees charged by other TPAs. Such
compensation will differ depending upon the individual agreement we have with each TPA. As such,
our firm or our Associated Persons may have an incentive to recommend one TPA over another TPA
with whom we have less favorable compensation arrangements or other advisory programs offered by
TPAs with which we have no compensation arrangements.
If you are referred to a TPA you will receive full disclosure, including services rendered, account
minimums, and fee schedules, at the time of the referral by delivery of a copy of the TPA's relevant
Form ADV Part 2 or equivalent disclosure document. Additionally, if the investment program
recommended to you is a wrap fee program, you will also receive the Appendix 1 or equivalent wrap
fee brochure provided by the sponsor of the program. Our firm or the TPA will provide you all
appropriate disclosure statements. You will be required to sign a management agreement with our firm
and may be required to sign a management agreement directly with TPAs. Under such arrangements,
you, our firm, or the relevant TPA may terminate the advisory relationship in accordance with the
relevant advisory agreement. If the TPA is compensated in advance, you will typically receive a pro
rata refund of any prepaid advisory fees upon termination of an advisory agreement.
Pension Consulting Services
We offer pension consulting services to employee benefit plans and their fiduciaries based upon the
needs of the plan and the services requested by the plan sponsor or named fiduciary. In general, these
services may include an existing plan review and analysis, plan-level advice regarding fund selection
and investment options, education services to plan participants, investment performance monitoring,
and/or ongoing consulting. These pension consulting services will generally be non-discretionary and
advisory in nature. The ultimate decision to act on behalf of the plan shall remain with the plan sponsor
or other named fiduciary.
We may also assist with participant enrollment meetings and provide investment-related educational
seminars to plan participants on such topics as:
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•Diversification
•Asset allocation
•Risk tolerance
•Time horizon
Our educational seminars may include other investment-related topics specific to the particular plan.
Our pension consulting services fees are negotiated on a case-by-case basis with you. The amount of
the fees will be negotiated based on the scope and complexity of the plan and the requested services.
Typically, fees will be based upon an agreed upon percentage of the plan assets. The fees and terms
will be clearly defined in the pension consulting services agreement.
We may also provide additional types of pension consulting services to plans on an individually
negotiated basis. All services, whether discussed above or customized for the plan based upon
requirements from the plan fiduciaries (which may include additional plan-level or participant-level
services) shall be detailed in a written agreement and be consistent with the parameters set forth in the
plan documents. Our advisory fees for these customized services will be negotiated with the plan
sponsor or named fiduciary on a case-by-case basis.
Our firm does not actively solicit plan participants for additional services/fees. However, participants
may engage our firm for on-going individual advisory services under a separate agreement. In such
cases, the services, fees, and terms of the engagement will be negotiable on a case-by-case basis and
will be clearly defined in the services agreement executed between our firm and the plan participant
prior to services being rendered.
You may terminate the pension consulting agreement within five days of acceptance without penalty.
After the five-day period, either party may terminate the agreement upon written notice to the other
party. The pension consulting fees will be prorated for the quarter in which the termination notice is
given and any unearned fees will be refunded to you.
Financial Planning and Consulting Services
We offer broad-based, modular, and consultative financial planning services. Financial planning will
typically involve providing a variety of advisory services to you regarding the management of your
financial resources based upon an analysis of your individual needs. If you retain our firm for financial
planning services, we will meet with you to gather information about your financial circumstances and
objectives. During this process, we may also meet with your other professional advisers (financial,
legal, real estate, tax, etc.) for a series of information gathering and/or implementation meetings. Once
we specify those long-term objectives (both financial and non-financial), we will develop shorter-term,
targeted objectives. Once we review and analyze the information you provide we will deliver a written
plan to you, designed to help you achieve your stated financial goals and objectives.
Financial plans are based on your financial situation at the time we prepare the plan and on the
financial information you provide. You must promptly notify us if your financial situation, goals,
objectives, or needs change.
You are under no obligation to act on our financial planning recommendations. Should you choose to
act on any of our recommendations, you are not obligated to implement the financial plan through any
of our other investment advisory services. Moreover, you may act on our recommendations by placing
securities transactions with any brokerage firm.
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Our fees for financial planning/consulting services are charged as a fixed fee ranging between $250
and $10,000. Fees are negotiable based upon the complexity and scope of the plan, as well as your
financial situation and objectives. An estimate of the total time/cost will be determined at the start of the
advisory relationship. In limited circumstances, the time/cost could potentially exceed the initial
estimate. In such cases, we will request that you approve the additional fees.
In limited circumstances, you may request advice on a single aspect regarding the management of
your financial resources. In these cases, we offer financial plans/consulting in a targeted format and/or
general consulting that address only those specific areas of interest or concern.
Typically, 50% of the estimated financial planning fees will be due in advance, with the remainder due
upon presentation of the plan. However, other fee payment arrangements may be negotiated. For
lengthy engagements, interim payments may be requested. Applicable fees, fee payment
arrangements, and the terms of the engagement will be clearly in the financial planning agreement
executed between our firm and you prior to services being rendered.
We will not require prepayment of a fee more than six months in advance and in excess of $1,200
under any circumstances.
You may terminate the financial planning agreement within five days after the date of acceptance
without penalty. After the five-day period, either you or our firm may terminate the financial planning
agreement by providing written notice to the other party. You will incur a pro rata charge for services
rendered prior to the termination of the agreement. If you have pre-paid advisory fees that we have not
yet earned, you will receive a prorated refund of those fees.
AdvisorK
We provide management of your 401K assets through our platform AdvisorK. AdvisorK is a service of
in which we will recommend specific allocation of 401k assets within your individual retirement plan
account. We then manage the assets in your retirement plan assets on a discretionary basis. Our
management of your investment selection is based on your risk tolerance, market conditions, and
trends. We use the Pontera technology platform (an unaffiliated third party provider) to manage your
retirement plan assets. We have no ability to make any changes to your retirement plan account other
than making investment allocation changes.
We charge a typical fee of 0.75% of the assets managed billed quarterly in advance based upon the
market value of the assets on the last day of the previous quarter. The initial fee shall be calculated on
a pro rata basis commencing on the day the assets are initially designated to us for management. No
portion of the fee shall be based on capital gains or capital appreciation of the assets. You will direct
and authorize us to deduct and/or charge the amount from your bank account, credit card, or other
payment account (e.g. Fidelity or Schwab account managed by PFA) that you select. Bank account or
credit card payments will be processed by Pinnacle Consulting CPAs, a third party, and PFA will not
have access to any of your bank account or credit card information.
In addition to our Management Fee, you may also incur certain charges imposed by unaffiliated third
parties.
Newsletter Subscription Service
We offer a newsletter to Investment Professionals Only on a subscription basis. The newsletter
contains Pinnacle Risk Management signals and Pinnacle rankings of various asset classes and
sectors. The annual subscription is $100 per month.
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Types of Investments
We may advise you on any type of investment that we deem appropriate based on your stated goals
and objectives, including equities, exchange traded funds, ("ETFs"), mutual funds, and affiliated mutual
funds for which we serve as investment adviser. We may also recommend, when appropriate,
investment in a private fund managed by an affiliated investment adviser. We may also provide advice
on any type of investment held in your portfolio at the inception of our advisory relationship.
You may request that we refrain from investing in particular securities or certain types of
securities, including affiliated mutual funds for which we serve as investment adviser. You must
provide these restrictions to our firm in writing.
IRA Rollover Recommendations
For purposes of complying with the DOL's Prohibited Transaction Exemption 2020-02 ("PTE 2020-02")
where applicable, we are providing the following acknowledgment to you. When we provide
investment advice to you regarding your retirement plan account or individual retirement account, we
are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act and/or the
Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way we
make money creates some conflicts with your interests, so we operate under a special rule that
requires us to act in your best interest and not put our interest ahead of yours. Under this special rule's
provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
Assets Under Management
As of December 31, 2023, we provide continuous management services for $270,948,123 in client
assets on a discretionary basis, and $1,125,943 in client assets on a non-discretionary basis. We also
manage $17,163,212 in client assets on a non-continuous basis.