1. PINNACLE Process, Discipline, Patience:
Keys to Effective Risk Management
Presented By:
Paul Carroll, CIO & Portfolio Manager
Pinnacle Family Advisors
For Financial Professional Use Only

2. THIS PRESENTATION IS FOR INVESTMENT PROFESSIONAL USE ONLY.
Important Disclaimer Information Regarding Models/Strategy Hypothetical Backtest.
Information contained in this presentation is the result of Hypothetical Backtesting.
The results shown DO NOT represent the results of any actual trading but were achieved by means of the retroactive application of a model designed with the benefit of hindsight.
These returns DO NOT represent any actual account of Pinnacle Family Advisors, LLC or The Sherman Sheet.
These returns DO NOT represent a composite of account returns of Pinnacle Family Advisors, LLC or The Sherman Sheet.
Not all ETF’s currently available were available for the entire backtest period. If all currently screened ETF’s were available for the entire period, the results could be different than shown – either positively or negatively. Backtested results do include the reinvestment of dividends, interest, and capital gains.
The backtested results produced by PFA have been reduced by 2.00% on an annual basis to help account for management fees, slippage, and trading costs that would have existed in a real account. Management fees, slippage, and trading costs in a real account may be greater than the affect shown here. Backtested Results generated by Riskalyze have NOT been reduced by the previously mentioned costs.
The information contained in this report was generated using third party software believed to be reliable (e.g. The Sherman Sheet, Morningstar, Riskalyze) and PFA is not responsible for any errors contained in the third party software.
The hypothetical backtested models/strategies and performance DOES NOT represent the results of actual trading using client assets nor decision-making during the period and DOES NOT and IS NOT intended to indicate past performance or future performance of any account or investment strategy managed by PFA. The performance of any account or investment strategy managed by PFA WILL DIFFER from the hypothetical backtested performance results and the ongoing performance of the models/strategies for a number of reasons, including without limitation the following: PFA will from time to time consider factors in addition to those noted herein in managing any account; PFA may rebalance an account more or less frequently than presented herein; PFA may use different investment strategies than those presented herein;
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Process, Discipline, Patience: Keys to Effective Risk Management

3. THIS PRESENTATION IS FOR INVESTMENT PROFESSIONAL USE ONLY.
Important Disclaimer Information Regarding Models/Strategy Hypothetical Backtest.
Continued from previous page
PFA may have a positive cash position. Had the backtested performance results included a positive cash position, the results would have been different and generally would have been lower; backtested returns are dependent on the market and economic conditions that existed during the period and future market and/or economic conditions can adversely affect future returns.
Past performance is NOT indicative of future results. Therefore, no one should assume that the future performance of any specific investment, investment strategy (including investments and investment strategies recommended by PFA), or products made reference to directly or indirectly, will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Different types of investments involve varying degrees or risk, and there can be no assurance that any specific investment or investment strategy will either be suitable or profitable for a client’s investment portfolio.
Pinnacle Family Advisors, LLC (PFA) is a registered investment adviser with the SEC. PFA only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. This report is a publication of PFA. Information presented is believed to be factual and up-to-date, but we DO NOT GUARANTEE its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of PFA as of the date of publication and are subject to change.
Information contained herein DOES NOT involve the rendering of personalized investment advice, but is limited to the dissemination of general information. This information IS NOT an offer to buy or sell, or a solicitation of any offer to buy or sell any securities mentioned herein.
Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.
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Process, Discipline, Patience: Keys to Effective Risk Management

4. THIS PRESENTATION IS FOR INVESTMENT PROFESSIONAL USE ONLY.
Important Disclaimer Information Regarding Models/Strategy Hypothetical Backtest.
Continued from previous page
Pinnacle Family Advisors, LLC, The Sherman Sheet, Riskalyze, and Morningstar are not affiliated companies.
Pinnacle Family Advisors and The Sherman Sheet do have an agreement in place for the managing of third party portfolios, including mutual funds, using The Sherman Sheet models and signals.
Process, Discipline, Patience: Keys to Effective Risk Management

5. PINNACLE
“The essence of investment management is the management of risk, not the management of returns.”
Benjamin Graham
“Risk management – you want it the least when you need it the most.”
Sean McCurry, President, PFA
Process, Discipline, Patience: Keys to Effective Risk Management

6. Competing Headlines PINNACLE
“The Bull Market Could Continue Forever’ – Strategist Jim Paulsen Outlines Conditions”
Matthew J. Belvedere, CNBC, August 4, 2017
“The Math That Proves This Marke Is Kaput”
Spencer Jakab, The Wall Street Journal, August 4, 2017
Process, Discipline, Patience: Keys to Effective Risk Management

7. MSTAR Global Flexible Alloc. AW*
PINNACLE
Competing Markets
S&P 500
Total Return
MSTAR Global Flexible Alloc. AW*
-3.60%
7.37%
2009 – 2017
(thru 7/31)
14.87%
7.70%
2000 – 2017
5.01%
7.53%
*Morningstar Global Flexible Allocation AW
Process, Discipline, Patience: Keys to Effective Risk Management

8. FACT Based Investing The Sherman Sheet www.theshermansheet.com
PINNACLE
Competing Strategies
Prediction Based Investing
Theory Based Investing
FACT Based Investing
The Sherman Sheet
Process, Discipline, Patience: Keys to Effective Risk Management

9. Long Term Consensus (+5.2%; Flat) Custom Scenario (-10.0%; Flat)
PINNACLE
Riskalyze Information (
Long Term Consensus (+5.2%; Flat)
Risk #
Range
P.A.R.*
Low
High
SPY (SPDR S&P 500 ETF) 73
-16.0%
+26.3%
10.27%
Custom Scenario (-10.0%; Flat)
Risk #
Range
P.A.R.*
Low
High
SPY (SPDR S&P 500 ETF) 93
-31.2%
+11.1%
-20.13%
*P.A.R. = Potential Annual Return
Process, Discipline, Patience: Keys to Effective Risk Management

10. Long Term Consensus (+5.2%; Flat) Custom Scenario (-10.0%; Flat)
PINNACLE
Riskalyze Information (
Long Term Consensus (+5.2%; Flat)
Risk #
Range
P.A.R.*
Low
High
SPY/M-S** 48
-9.1%
+20.6%
11.53%
Custom Scenario (-10.0%; Flat)
Risk #
Range
P.A.R.*
Low
High
SPY/M-S** 75
-16.7%
+13.0%
-3.67%
*P.A.R. = Potential Annual Return
**SPY/M-S = 50% SPY/50% Sherman Multi Strategy Blend
Process, Discipline, Patience: Keys to Effective Risk Management

11. Long Term Consensus (+5.2%; Flat) Custom Scenario (-10.0%; Flat)
PINNACLE
Riskalyze Information (
Long Term Consensus (+5.2%; Flat)
Risk #
Range
P.A.R.*
Low
High
Balanced** 48
-9.1%
+16.5%
7.39%
Custom Scenario (-10.0%; Flat)
Risk #
Range
P.A.R.*
Low
High
Balanced** 80
-18.3%
+7.4%
-10.85%
*P.A.R. = Potential Annual Return
**Balanced = 60% SPY/40% AGG
Process, Discipline, Patience: Keys to Effective Risk Management

12. Long Term Consensus (+5.2%; Flat) Custom Scenario (-10.0%; Flat)
PINNACLE
Riskalyze Information (
Long Term Consensus (+5.2%; Flat)
Risk Managed
Risk #
Range
P.A.R.*
Low
High
Balanced** 35
-5.5%
+16.5%
9.35%
Custom Scenario (-10.0%; Flat)
Risk Managed
Risk #
Range
P.A.R.*
Low
High
Balanced** 52
-10.1%
+10.5%
0.41%
*P.A.R. = Potential Annual Return
**Risk Managed Balanced = 30% SPY/20% AGG/30% Sherman Multi Strategy/20% Sherman Tactical Allocation
Process, Discipline, Patience: Keys to Effective Risk Management

13. Riskalyze Stress Tests (Estimated Performance)
PINNACLE
Riskalyze Information (
Riskalyze Stress Tests (Estimated Performance)
If 2013-Like Bull Market
If 2008-Like
Bear Market
If Financial Crises Again*
SPY (SPDR S&P 500 ETF)
+31.9%
-38.1%
-53.1%
SPY/M-S**
+26.5%
-18.9%
-26.3%
Balanced***
+17.8%
-19.2%
-28.3%
Risk Managed Balanced****
+18.1%
-5.5%
-12.3%
*Financial Crises = 10/15/2007 through March 2, 2009
**SPY/M-S = 50% SPY/50% Sherman Multi Strategy Model Blend
***Balanced = 60% SPY/40% AGG (iShares Aggregrate Bond ETF)
****Risk Managed Balanced = 30% SPY/20% AGG/30% Sherman Multi Strategy Model Blend/20% Sherman Tactical Allocation Model Blend
Process, Discipline, Patience: Keys to Effective Risk Management

14. Risk Management Signals
PINNACLE
Risk Management Signals
Signal Name
Term
# Changes
Bull/Bear Indicator
Long 8*
Quarterly Trend Indicator
Intermediate (quarterly) 15
Shermanator
Short 78
*includes signal change to negative on 10/13/2000
Process, Discipline, Patience: Keys to Effective Risk Management

15. PINNACLE Sherman Multi Strategy Model Blend Bull-Calendar Model 33%
STAR Min Max 0-100
Sector-Long-Cash
34%
Sherman Tactical Allocation Model Blend
Bull-Calendar Model
20%
Sector-Long-Short
Multi-Sector Bond
Risk Managed Gold (Sector)
Policy Portfolio 5
Process, Discipline, Patience: Keys to Effective Risk Management

16. PINNACLE This Presentation is for Financial Professionals Only PFA
620 W. Republic Road, Suite 104
Springfield, MO 65807
Process, Discipline, Patience: Keys to Effective Risk Management