PIVOTAL ADVISORS LLC

[Pivotal is a full service, SEC registered investment advisory firm established in 2020, in the state of New York.] The firm’s principal owner is Tiffany McGhee. 

Ms. McGhee, Pivotal’s registered principal, also serves as its Chief Executive Officer, Chief Compliance Officer and Chief Investment Officer.

Pivotal focuses on providing its clients a broad range of comprehensive investment management, portfolio and asset management services primarily through individual consultations. Pivotal specializes in providing customized services to high-net-worth individuals, foundations and endowments for portfolios in excess of $5,000,000 that can be managed on a discretionary or non-discretionary basis. 

Pivotal will consider smaller portfolios on a case-by-case basis. In addition to its investment advisory and consultation services described above, Pivotal has developed the ability to work with clients and advise them with respect to impact investing (whether debt or equity-based), which Pivotal expects to involve consulting services that center on community-focused opportunities, whether or not they involve securities.

Investment Advisory and Retirement Plan Consulting Services 

Investment advisory services may involve portfolio and asset management, investment recommendations, investment policy statement development and the analysis of strategic and tactical asset allocation. Potential investments include: stocks, bonds, options, real estate, hedge funds and private equity investments. Investment advisory consultations can be general in nature or focus on particular areas of interest, depending on the client’s needs. 

Retirement plan consulting may include retirement plan provider search and selection, retirement plan benchmarking, retirement recordkeeper searches, fee analysis, participant education services, mutual fund search and selection, and performance monitoring. 

Our firm provides ERISA 3(38) and 3(21) fiduciary consulting services for 403b, 401(k), 457 and 401a ERISA plans worth more than $100 million. These assets under advisement are managed by a third party. 

At inception of the relationship Pivotal completes and provides an evaluation of the client’s current financial condition and discussed goals. The engagement also includes implementation of recommendations accepted by client, on-going communication to ensure client objectives and needs are met, and quarterly written portfolio reviews. 

Wrap Fee Programs 

Nothing to Disclose.

Assets Under Management 

As of December 2023, Pivotal has manage assets of $164,424,130.00 on a discretionary basis and $256,110,683.00 on a non-discretionary basis.

Miscellaneous 

Limitations of Non-Investment Consulting/Implementation Services. To the extent requested by the client, Pivotal will generally provide and related consulting services regarding non-investment related matters. Pivotal will generally provide such consulting services inclusive of its advisory fee set forth at Item 5 below (exceptions could occur based upon assets under management, special projects, stand-along planning engagements, etc. for which Pivotal may charge a separate or additional fee). Pivotal believes that it is important for the client to address issues with Pivotal on an ongoing basis. Pivotal’s fee, as set forth at Item 5 below, will remain the same regardless of whether or not the client determines to address issues with Pivotal. Pivotal remains available to address issues with the client on an ongoing basis.

Please Note: Pivotal does not serve as an attorney or accountant, and no portion of our services should be construed as same. Accordingly, Pivotal does not prepare legal documents or prepare tax returns. To the extent requested by a client, we may recommend the services of other professionals for non-investment implementation purpose (i.e. attorneys, accountants, etc.). The client is under no obligation to engage the services of any such recommended professional. The client retains absolute discretion over all such implementation decisions and is free to accept or reject any recommendation from Pivotal and/or its representatives.

Please Also Note: If the client engages any recommended unaffiliated professional, and a dispute arises thereafter relative to such engagement, the client agrees to seek recourse exclusively from and against the engaged professional. At all times, the engaged unaffiliated licensed professional(s) (i.e. attorney, accountant, etc.), and not Pivotal, shall be responsible for the quality and competency of the services provided.

Please Note: Retirement Rollovers-Potential for Conflict of Interest: A client or prospective client leaving an employer typically has four options regarding an existing retirement plan (and may engage in a combination of these options): (i) leave the money in the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers are permitted, (iii) roll over to an Individual Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending upon the client’s age, result in adverse tax consequences). If Pivotal recommends that a client roll over their retirement plan assets into an account to be managed by Pivotal, such a recommendation creates a conflict of interest if Pivotal will earn new (or increase its current) compensation as a result of the rollover. When acting in such capacity, Pivotal serves as a fiduciary under the Employee Retirement Income Security Act (ERISA), or the Internal Revenue Code, or both. No client is under any obligation to roll over retirement plan assets to an account managed by Pivotal. Pivotal’s Chief Compliance Officer, Tiffany McGhee, remains available to address any questions that a client or prospective client may have regarding the potential for conflict of interest presented by such rollover recommendation.

Custodian Charges-Additional Fees: As discussed below at Item 11 below, when requested to recommend a broker-dealer/custodian for client accounts, Pivotal generally recommends that Charles Schwab & Co., Inc. serve as the broker-dealer/custodian for client investment management assets (unless the client requires lending services, and Pivotal shall generally recommend Charles Schwab & Co., Inc.). Broker-dealers such as Charles Schwab & Co., Inc. charge transaction fees for effecting securities transactions. In addition to Pivotal’s investment advisory fee referenced in Item 5 below, the client will also incur transaction fees to purchase securities for the client’s account (i.e., mutual funds, exchange traded funds, individual equity and fixed income transactions, etc., purchased by Pivotal or Independent Manager (see below)).

Please Note-Use of Mutual and Exchange Traded Funds: Most mutual funds and exchange-traded funds are available directly to the public. Thus, a prospective client can obtain many of the funds that may be utilized by Pivotal independent of engaging Pivotal as an investment adviser. However, if a prospective client determines to do so, he/she will not receive Pivotal’s initial and ongoing investment advisory services. Please Note: In addition to Pivotal’s investment advisory fee described below, and transaction and/or custodial fees discussed above, clients will also incur, relative to all mutual fund and exchange traded fund purchases, charges imposed at the fund level (e.g. management fees and other fund expenses).

ANY QUESTIONS: Pivotal’s Chief Compliance Officer, Tiffany McGhee, remains available to address any questions that a client or prospective client may have regarding the above.

Private Investment Funds. Pivotal also provides investment advice regarding private investment funds. Pivotal, on a non-discretionary basis, may recommend that certain qualified clients consider an investment in private investment funds. Pivotal’s role relative to unaffiliated private investment funds shall be limited to its initial and ongoing due diligence and investment monitoring services. If a client determines to become an unaffiliated private fund investor, the amount of assets invested in the fund(s) shall be included as part of “assets under management” for purposes of Pivotal calculating its investment advisory fee. Pivotal’s clients are under absolutely no obligation to consider or make an investment in any private investment fund(s).

Please Note: Private investment funds generally involve various risk factors, including, but not limited to, potential for complete loss of principal, liquidity constraints and lack of transparency, a complete discussion of which is set forth in each fund’s offering documents, which will be provided to each client for review and consideration. Unlike liquid investments that a client may own, private investment funds do not provide daily liquidity or pricing. Each prospective client investor will be required to complete a Subscription Agreement, pursuant to which the client shall establish that he/she is qualified for investment in the fund and acknowledges and accepts the various risk factors that are associated with such an investment.

Please Also Note: Valuation. In the event that Pivotal references private investment funds owned by the client on any supplemental account reports prepared by Pivotal, the value(s) for all private investment funds owned by the client shall reflect the most recent valuation provided by the fund sponsor. However, if subsequent to purchase, the fund has not provided an updated valuation, the valuation shall reflect the initial purchase price. If subsequent to purchase, the fund provides an updated valuation, then the statement will reflect that updated value. The updated value will continue to be reflected on the report until the fund provides a further updated value. As a result of the valuation process, if the valuation reflects initial purchase price or an updated value subsequent to purchase price, the current value(s) of an investor’s fund holding(s) could be significantly more or less than the value reflected on the report. Unless otherwise indicated, the client’s advisory fee shall be based upon the value reflected on the report.

Please Note: Fund Liquidity Constraints. Pivotal may utilize mutual funds that provide for limited liquidity, generally on a quarterly basis. Thus, if we determined that the fund was no longer performing or if you ever determined to transfer your account, such fund could not be sold or transferred immediately. Rather, sale or transfer would need to await the quarterly permitted sale date, or longer. Moreover, the eventual net asset value for such fund could be substantially different (positive or negative) than the fund value on the date that the sale was requested. There can be no assurance that any such strategy will prove profitable or successful. In light of these enhanced risks/rewards, a client may direct Pivotal, in writing, not to employ any or all such strategies for the client’s account.

Portfolio Activity. Pivotal has a fiduciary duty to provide services consistent with the client’s best interest. As part of its investment advisory services, Pivotal will review client portfolios on an ongoing basis to determine if any changes are necessary based upon various factors, including, but not limited to, investment performance, fund manager tenure, style drift, account additions/withdrawals, and/or a change in the client’s investment objective. Based upon these factors, there may be extended periods of time when Pivotal determines that changes to a client’s portfolio are neither necessary nor prudent. Clients are still subject to the fees described in Item 5 below, even during periods of account inactivity. Of course, as indicated below, there can be no assurance that investment decisions made by Pivotal will be profitable or equal any specific performance level(s).

Client Obligations. In performing our services, Pivotal shall not be required to verify any information received from the client or from the client’s other professionals, and is expressly authorized to rely thereon. Moreover, it remains each client’s responsibility to promptly notify Pivotal if there is ever any change in his/her/its financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.

Please Note: Investment Risk. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Pivotal will be profitable or equal any specific performance level(s)).