A. Description of the Advisory Firm
Oak Root LLC (hereinafter “ORL”) is a Limited Liability Company organized in the State
of California.
The firm was formed in June 2015, and the principal owner is Kevin Charles Root.
B. Types of Advisory Services
Portfolio Management Services
ORL offers ongoing portfolio management services based on the individual goals,
objectives, time horizon, and risk tolerance of each client. ORL creates an Investment
Policy Statement for each client, which outlines the client’s current situation (income, tax
levels, and risk tolerance levels) and then constructs a plan to aid in the selection of a
portfolio that matches each client's specific situation. Portfolio management services
include, but are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
ORL evaluates the current investments of each client with respect to their risk tolerance
levels and time horizon. ORL will request discretionary authority from clients in order to
select securities and execute transactions without permission from the client prior to each
transaction. Risk tolerance levels are documented in the Investment Policy Statement,
which is given to each client.
ORL seeks to provide that investment decisions are made in accordance with the fiduciary
duties owed to its accounts and without consideration of ORL’s economic, investment or
other financial interests. To meet its fiduciary obligations, ORL attempts to avoid, among
other things, investment or trading practices that systematically advantage or
disadvantage certain client portfolios, and accordingly, ORL’s policy is to seek fair and
equitable allocation of investment opportunities/transactions among its clients to avoid
favoring one client over another over time. It is ORL’s policy to allocate investment
opportunities and transactions it identifies as being appropriate and prudent, including
initial public offerings ("IPOs") and other investment opportunities that might have a
limited supply, among its clients on a fair and equitable basis over time.
Selection of Other Advisers
ORL may direct clients to third-party investment advisers to manage all or a portion of
the client's assets. Before selecting other advisers for clients, ORL will always ensure those
other advisers are properly licensed or registered as an investment adviser. ORL conducts
due diligence on any third-party investment adviser, which may involve one or more of
the following: phone calls, meetings and review of the third-party adviser's performance
and investment strategy. ORL then makes investments
with a third-party investment
adviser by referring the client to the third-party adviser. These investments may be
allocated either through the third-party adviser's fund or through a separately managed
account managed by such third party adviser on behalf of ORL's client. ORL may also
allocate among one or more private equity funds or private equity fund advisers. ORL
will review the ongoing performance of the third-party adviser as a portion of the client's
portfolio.
Services Limited to Specific Types of Investments
ORL generally limits its investment advice to mutual funds, fixed income securities, real
estate funds (including REITs), insurance products including annuities, equities, hedge
funds, private equity funds, ETFs, treasury inflation protected/inflation linked bonds,
non-U.S. securities, venture capital funds and private placements. ORL may use other
securities as well to help diversify a portfolio when applicable.
Financial Planning
Financial plans and financial planning may include, but are not limited to: investment
planning; life insurance; tax concerns; retirement planning; college planning; and
debt/credit planning.
C. Client Tailored Services and Client Imposed Restrictions
ORL will tailor a program for each individual client. This will include an interview session
to get to know the client’s specific needs and requirements as well as a plan that will be
executed by ORL on behalf of the client. ORL may use “model portfolios” together with a
specific set of recommendations for each client based on their personal restrictions, needs,
and targets. Clients may impose restrictions in investing in certain securities or types of
securities in accordance with their values or beliefs. However, if the restrictions prevent
ORL from properly servicing the client account, or if the restrictions would require ORL
to deviate from its standard suite of services, ORL reserves the right to end the
relationship.
ORL will review how clients are allocated with their current investments and determine
if clients are over allocated or under allocated to any specific asset class. ORL will then
build a portfolio that takes each client’s legacy positions into consideration.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and other administrative
fees. ORL does not participate in any wrap fee programs.
E. Assets Under Management
ORL has the following approximate assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$766,000,000 $11,000,000 December 2023