WHO WE ARE
Oakwood Capital, Inc. (referred to as “we,” “our,” “us,” “Advisor,” or “Oakwood Capital”) is a corporation
organized under the laws of the State of Minnesota since 1983. In February 2021, Oakwood Capital
transitioned from a state-registered investment advisor to a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”). Prior to June 1, 2022, Oakwood Capital was previously
known as Gardner Advisors, Inc. Oakwood Capital is principally owned by the Douglas S. King and
Kathryn W. King Revocable Living Trust dated 06/24/1993. Douglas S. King is the President and Chief
Compliance Officer (“CCO”) of Oakwood Capital, Inc.
As an investment advisor, Oakwood Capital serves as a fiduciary to our clients, as defined under applicable
laws and regulations. As a fiduciary, the Advisor upholds a duty of loyalty, fairness and good faith towards
each client and seeks to mitigate potential conflicts of interest. Oakwood Capital’s fiduciary commitment
is further described in the Advisor’s Code of Ethics. For more information regarding our Code of Ethics,
please see Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading,
below.
SERVICES WE OFFER
Prior to offering any services, we conduct interviews with our clients to determine their financial needs and
objectives. The interview will cover the client’s current financial situation, investment goals, and strategies.
Based on this initial discussion, we will offer the client one or more of our advisory services below:
Investment Advisory and Portfolio Management Services
We provide investment advisory and portfolio management services to our clients, on a discretionary and
non-discretionary basis, based on the specific needs and objectives of each client and the suitability of our
products and services. Portfolios constructed by our investment advisors are managed on a non-
discretionary basis, however, subject to a limited power of attorney (“LPOA”), Oakwood Capital will have
authority to liquidate client assets solely for the purpose of satisfying payment of Oakwood Capital’s
advisory fees in the event the client’s designated method of payment does not have sufficient cash reserves.
Clients desiring discretionary portfolio management services may utilize Oakwood Capital Managed
Portfolios options administered through Oakwood Capital Advisors, LLC, an affiliate of Oakwood Capital.
Oakwood’s portfolios and investment strategies are overseen by Douglas S. King, its Chief Investment
Officer (“CIO”). Clients electing to utilize Oakwood’s services will be charged a separate investment
advisory and portfolio management services fee from Oakwood Capital’s normal management fee. Please
see Item 5 – Fees and Compensation for more details.
Prior to engaging Oakwood Capital to provide any investment advisory and portfolio management services,
we require a written investment management agreement (“IMA”) signed by the client. The IMA outlines
the agreed upon services, our investment management authority, and the fees the clients will incur for our
services. Upon signing the IMA, we will gather the client’s financial information, such as their investment
objectives, risk tolerance, investment philosophy, restrictions or prohibitions for their portfolio and/or
assets, and other relevant information. The information gathered will be used to recommend an initial
portfolio to the client. We encourage clients to discuss their goals and situation with us on an ongoing basis
to ensure we are providing the most appropriate management of their assets. We provide continuous
supervision and recommendations to rebalance the portfolio as changes in market conditions and client
circumstances may require. We review client accounts annually at a minimum and conduct comprehensive
client reviews annually. We will also conduct comprehensive client reviews in response to sudden changes
in the market and as various circumstances may necessitate.
Financial Planning and Consulting Services
We provide our clients with a comprehensive analysis of their current financial situation, as well as detailed
recommendations relating to the client’s financial goals and management of their financial resources. Upon
collecting the pertinent information about the client’s financial situation and objectives, our investment
advisor will present to the client a financial plan designed and tailored to achieve the client’s goals. Based
on an analysis of the client’s individual needs, our financial planning service may include the following:
• Financial Profile Review and Analysis
• Budgeting and Cash Flow Analysis
• Retirement Planning and Analysis
• Estate Planning
• Investment Planning
• Tax Planning and Strategies
• Insurance Planning
In some circumstances, clients may only require advice on a single aspect of the management of their
financial resources. For these clients, we offer broad financial plans and/or general consulting services that
address only those specific areas of interest or concern.
Financial plans are based on the client’s financial situation at the time the plan is presented and are based
on the financial information disclosed by the client. Clients are advised that certain assumptions may be
made with respect to interest and inflation rates and the use of past trends and performance of the market
and economy. Past performance is in no way an indication of future performance. Oakwood Capital cannot
offer any guarantees or promises that the client’s financial goals and objectives will be met. Clients are
under no obligation to act upon our recommendations, or to implement our recommendations through our
firm. As the client’s financial situation, goals, objectives, or needs change, the client must notify us
promptly so their financial plan may be updated accordingly upon the client’s request.
Retirement Plan and Pension Consulting Services
We offer retirement plan or pension consulting services to qualified plans and participants. Such advice
may include periodic monitoring and reporting of third-party money managers’ performance, retirement
planning advice to plan participants, employee education, asset allocation advice to the plan and
participants, and periodic monitoring and reporting of participant and plan investments. The client agrees
to furnish Oakwood Capital complete copies of all documents that establish and govern the plan and
evidencing client’s authority to retain Oakwood Capital. The client shall promptly furnish Oakwood Capital
any amendments to the plan, and client agrees that, if any amendment affects the rights or obligations of
Oakwood Capital, such amendment shall be binding on Oakwood Capital only when received by Oakwood
Capital, in writing.
These accounts are regulated under the Employee Retirement Income Securities Act (“ERISA”). Oakwood
Capital will provide retirement plan or pension consulting services to the client as described above. The
participant must make the ultimate decision as to what investment option to select for their individual
account. The client is free to seek independent advice about the appropriateness of any recommended
services for the plan.
The RBC Advisor Account
The RBC Advisor Account is a wrap fee program sponsored by RBC Correspondent Services (“RBC”), a
division of RBC Capital Markets Corporation, whereby clients are charged an annual asset-based fee for
non- discretionary investment advisory services. Clients are not charged separately for commissions and
transaction fees, subject to the exceptions of certain fees stated in RBC's wrap fee program brochure. The
RBC Advisor Account is a non-discretionary account whereby an investment advisor of Oakwood Capital
will assist the client in developing a portfolio of investments including mutual funds, ETFs and other
securities.
Oakwood Capital may recommend eligible securities, including mutual funds offered at their net asset value
without any front-end or deferred sales charge, which may also include no-load funds which Oakwood
Capital believes possesses investment characteristics that are consistent with the client’s risk tolerance and
investment objectives. If the implemented investment portfolio consists of only mutual funds, clients will
specify in writing the account and amount of assets to be invested in specific eligible mutual funds. This
written fund allocation may subsequently be modified by the client by notifying us in writing. It is the
client’s responsibility to advise us at such times as they determine rebalancing should occur.
Neither RBC nor Oakwood Capital has discretionary authority with respect to the RBC Advisor Account;
meaning you have the sole discretion to accept or reject an investment strategy or any specific
recommendation to purchase, sell, or redeem securities. However, if your investment allocation includes a
mutual fund share class that we deem is ineligible for this wrap fee program, we may recommend to the
client equivalent products and shares which are eligible for this wrap fee program.
The RBC Advisor Account is not for day trading or excessive trading (i.e., trading securities based on
market timing). The RBC Advisor Account may be restricted or terminated at the discretion of RBC upon
written notice to the client. Oakwood Capital will not act as a portfolio manager of the RBC Advisor
Account, whereby it would have discretionary authority, but will rather work with the client on a non-
discretionary basis to develop a portfolio of various investments appropriate for the client.
In determining whether to establish an RBC Advisor Account, a client should be aware that the overall cost
to the client may be higher or lower than the client might incur by purchasing the types of securities
available in the RBC Advisor Account separately.
RBC Consulting Solutions Program
RBC’s Consulting Solutions Program is an advisory program through which our clients’ accounts are
managed by one or more professional investment managers who are registered and/or affiliated with RBC
and participating in RBC’s Consulting Solutions Program. Our investment advisor may provide you with
information on investment managers whose investment philosophy and objectives may be compatible with
your risk tolerance and investment objectives. Clients will select their investment manager on their Single
Account Program Agreement with RBC and Oakwood Capital. Clients will not sign a separate agreement
with the investment manager.
Independent Money Managers
Alphastar Capital Management, LLC
Oakwood Capital partners with Alphastar Capital Management, LLC (“Alphastar”) and their platform. If
deemed aligned with a client’s objectives, Oakwood may utilize Alphastar to actively manage all or a
portion of a client’s assets. Alphastar will have discretion to determine the securities to be bought or sold
within the client’s accounts subject to reasonable restrictions imposed by the client, and subject to the
client’s signature on Alphastar’s agreement. Client accounts are reviewed regularly by Alphastar and
rebalanced on a discretionary basis to ensure the client’s account does not deviate from the selected
investment strategy.
At its discretion, Alphastar may utilize one or more independent third-party managers (“Subadvisers”) to
actively manage one or more portfolios on behalf of clients. Each Subadviser maintains its own firm
brochure (Form ADV, Part 2A) and brochure supplements (Form ADV, Part 2B), which disclose
important information about the Subadviser’s firm, its services, and conflicts of interest. When a
Subadviser is engaged to provide services to a client, you will grant us the authority in the Client
Agreement to receive, on your behalf, each Subadviser’s Form ADV Part 2A. However, you can revoke
this authority at any time.
Clients will receive a brochure which details the investment strategy, rebalancing options and methodology.
A copy of the program brochure can be provided upon request by your investment advisor. Additionally,
information on Alphastar, and any of its Subadvisers, is available on the SEC’s website at
www.adviserinfo.sec.gov. We encourage clients to carefully review Alphastar’s brochure, and the
brochures of its Subadvisers, for additional information regarding the investment strategies, processes and
associated risks that impact client accounts.
On at least an annual basis, Oakwood Capital will meet with clients to review the performance of client's
account, investment guidelines and other relevant factors in order to assess what changes, if any, should be
made to the management of client's account.
Third-Party Separately Managed Account Programs
Oakwood Capital offers services to act as a solicitor for, and offers advice about, various third-party
separately managed account programs sponsored by unaffiliated investment advisors such as AssetMark or
other third-party retirement plan service providers. In third-party separately managed account programs,
the program sponsor selects the investments, monitors and evaluates investment performance, executes
portfolio transactions without commission charges, and provides custodial services.
Oakwood Capital reviews several factors when determining which third-party investment advisor is best
suitable for clients. These factors include but are not limited to: performance, investment objectives, fees,
and methods of analysis. Third-party investment advisors to which Oakwood Capital refers its clients may
not achieve the best rate of returns or charge the lowest fees in comparison to other third-party investment
advisors.
Clients recommended for these programs will receive a copy of the third-party investment advisor’s
disclosure brochure from the program sponsor. Please see the recommended third-party investment
advisor’s disclosure brochure for additional detailed information about the third-party investment advisor’s
programs and fees.
Typically, third-party managed programs are quoted as a single fee in which the client pays to the program
sponsor. A separate agreement between Oakwood Capital and the client will address our portion of that fee.
Third-party separately managed account programs provide separate fee program brochures which discuss
total fees. As portfolio fees and fees for brokerage services will vary based on the program, the size of the
account being managed, and the clearing firm at which trades are transacted, Oakwood Capital will seek to
assure that the client is charged a competitive rate according to the size of the account being managed.
However, please note, the total fees charged by the program sponsor, including brokerage and custodial
fees, may exceed the cost of separately obtaining brokerage, custody and other services if such fees were
negotiated separately. The client will receive performance reports, account value and billing information at
least quarterly, and in some cases monthly, depending on the program used, from the program sponsor. As
the relationship manager, Oakwood Capital will contact the client periodically to conduct a financial review
utilizing the reports generated by the program sponsor. Interim reviews of client accounts with Oakwood
Capital are available upon request by the client.
The client’s advisor will monitor the performance of the third-party manager, on at least a quarterly basis,
and will make recommendations or re-allocate assets amongst managers, as necessary.
RBC Unified Portfolio (“RBC UP”) – formerly the Resource II Program
RBC UP is a unified management account (“UMA”) program through which accounts are professionally
managed by RBC as the overlay manager or an unaffiliated third-party overlay manager, Envestnet Asset
Management, Inc. (“Envestnet”) (discussed below). The overlay manager manages the client’s assets
through investments in mutual funds, exchange traded products (“ETPs”), and/or in accordance with one
or more model portfolios, provided by model providers or RBC, all in a single account on a discretionary
basis. Please review the disclosure documents provided by RBC for additional information and updates
regarding the RBC UP program.
Oakwood Capital will assist clients with the identification of investment objectives through preparation of
a risk profile questionnaire and will assist clients in the selection of appropriate money managers available
through RBC UP. The money managers selected under RBC UP will have discretion to determine the
securities to be bought or sold within the client’s accounts subject to reasonable restrictions imposed by the
client, subject to the client’s signature on the money manager’s account agreement. Client accounts are
reviewed regularly by the overlay manager and rebalanced on a discretionary basis to ensure the client’s
account does not deviate from the selected investment strategy. Upon transition of the client’s account(s)
to the RBC UP program, the account's investment allocation will be reviewed or evaluated for rebalancing
on an annual basis. Clients enrolled in the program will receive a program brochure which details the
rebalancing frequency options and methodology. A copy of the program brochure can be provided upon
request by your investment advisor.
Client’s account(s) may be invested in model portfolios provided by overlay managers or may be allocated
amongst third-party managers available through RBC UP by the overlay manager on a discretionary basis.
Should the client not have or not desire to utilize an overlay manager through RBC UP, Oakwood Capital
may recommend to the Client, on a non-discretionary basis, third-party managers available through RBC
UP to allocate the Client’s account(s) to. On at least an annual basis, Oakwood Capital will meet with
clients to review the performance of client's account, investment guidelines and other relevant factors in
order to assess what changes, if any should be made to the management of client's account.
Clients should refer to RBC’s disclosure brochure for additional information regarding RBC UP. In
determining whether to participate in RBC UP, clients should be aware RBC UP is a wrap fee program
sponsored by RBC where custody and brokerage fees are included in the total advisory fee charged to the
client, subject to the exceptions of certain fees stated in RBC UP’s program brochure and the overall cost
to the client may be higher or lower than what the client might incur by purchasing separately the types of
securities available in the program. Oakwood Capital may recommend and refer its clients to various third-
party money managers available through RBC UP.
Envestnet Private Wealth Management Program
Oakwood Capital accesses Envestnet Asset Management, Inc. (“Envestnet”) through an arrangement with
RBC to offer our clients access to the Private Wealth Management Program offered by Envestnet. Envestnet
and Oakwood Capital are not affiliated and are independent of one another. In this program, our investment
advisors will recommend an Envestnet third-party manager to the client. Upon recommendation, the Client
will receive copies of the Oakwood Capital’s Disclosure Brochure, Envestnet’s disclosure brochure, and
the third-party manager’s disclosure brochure. Fees related to this program can be found in the respective
disclosure brochure documents and your agreement with the respective advisors.
Unbundled Managed Account Solutions Program (“uMAS Account”)
The uMAS Account program allows clients to maintain an account custodied at RBC and receive advisory
services from Oakwood Capital. The services from Oakwood Capital primarily include recommendations
of Oakwood Capital-approved third-party money managers, who may or may not be on RBC’s list of
approved third-party investment managers. Oakwood Capital will assist clients with the identification of
investment objectives through preparation of a risk profile questionnaire and will assist clients in the
selection of an appropriate money manager. The client will be provided a copy of the third-party managers
disclosure brochure by Oakwood Capital. Oakwood Capital will meet with clients to review the
performance of the client's account, investment guidelines and other relevant factors in order to assess what
changes, if any should be made to the management of client's account on at least an annual basis.
The client is required to sign a discretionary management agreement with their third-party manager of
choice. The designated third-party manager will have discretion to determine the securities to be bought or
sold within the client’s accounts subject to reasonable restrictions imposed by the client. Only the client
will maintain discretion to hire and/or fire the third-party manager.
AssetMark
Oakwood Capital has partnered with AssetMark, which Sponsors the AssetMark Platform (“Platform”), a
wrap fee program sponsored by AssetMark. Under the Platform, AssetMark provides account
administration, custody, brokerage and advisory services under one flat fee. AssetMark and Oakwood
Capital are not affiliated and are independent of one another. The Platform is a non-discretionary account
whereby an investment advisor of Oakwood Capital will assist the client in assessing their needs and
objectives and selecting which Risk Return Profile or model portfolio allocation is most suitable for the
client.
The client is required to sign a discretionary management agreement with AssetMark. AssetMark will have
discretionary authority to determine what investments will be included in each model portfolio and thus
will have discretion to determine the securities to be bought or sold within the client’s subject to the Risk
Return or model portfolio selected by the client. Only the client will have the authority to terminate the
relationship with AssetMark pursuant to its client agreement with AssetMark.
The Client will receive copies of the Oakwood Capital’s Disclosure Brochure and AssetMark’s disclosure
brochure, and the third-party manager’s disclosure brochure. Fees related to this program can be found in
the respective disclosure brochure documents and the client’s agreement with AssetMark. AssetMark may
pay Oakwood Capital referral fees, but the referral arrangement will not increase the fees payable by Clients
referred to AssetMark by Oakwood Capital.
TAILORED RELATIONSHIPS
At Oakwood Capital, we offer the same suite of services to all of our clients. The management services and
recommendations offered by Oakwood Capital are based on the individual needs of our clients and the
suitability of products and services. Recommendations presented to clients and the implementation of such
recommendations are dependent upon the information provided by the client to build the client’s financial
profile, which outlines each client’s current situation (income, objectives, and risk tolerance levels) and is
used to construct a client specific action plan to aid in the selection of a portfolio that matches their
restrictions, needs, and targets.
Clients may impose reasonable restrictions, in writing, on investing in certain securities or types of
securities in accordance with their values and beliefs. We will make every effort to comply with the wishes
of the client but cannot guarantee absolute adherence due to our use of indexed products, funds, and
exchange traded funds (“ETF”) that are controlled by third-party managers. However, it is incumbent upon
the client to disclose any restrictions and preferences in writing to Oakwood Capital prior to the
implementation of our recommendations. Should the restrictions prevent Oakwood Capital from properly
servicing the client account, or if the restrictions would require Oakwood Capital to deviate from its
standard suite of services, Oakwood Capital reserves the right to terminate the relationship.
WRAP FEE PROGRAM
Oakwood Capital participates in a wrap fee program sponsored by RBC and AssetMark as outlined
in Item 4 – The Advisor Account and RBC UP and AssetMark.
Wrap Fee Programs are arrangements between broker-dealers, investment advisors, banks and other
financial institutions, and affiliated and unaffiliated investment advisors through which the clients of such
firms receive discretionary investment advisory, execution, clearing and custodial services in a “bundled”
form. In exchange for these “bundled” services, the clients pay an all-inclusive (or “wrap”) fee determined
as a percentage of the assets held in the wrap account.
Wrap Fee Programs are not suitable for all investment needs, and any decision to participate in a Wrap Fee
Program should be based on the client’s individual financial circumstances and investment goals. The
benefits under a Wrap Fee Program depend, in part, upon the size of a client’s account and the number of
transactions likely to be generated in the account. For example, clients enrolled in a wrap fee account that
have little to no transactions will likely pay more than those not enrolled in a wrap fee. Participating in a
Wrap Fee Program may cost more or less than the cost of purchasing such services separately from a broker-
dealer.
Oakwood Capital has a financial incentive to recommend the RBC Advisor Account and RBC UP over
other programs and services as Oakwood Capital receives compensation for the client’s participation in
these programs, which may be more than what Oakwood Capital would receive if the client paid separately
for investment advisory, brokerage, and other services. For additional information regarding Advisor
Account or RBC UP, please see RBC’s disclosure brochure. As investment advisors, we owe our clients a
fiduciary duty to put the client’s interest first, which includes, but is not limited to, a duty of care, loyalty,
obedience, and utmost good faith. To uphold our fiduciary duty to our clients, our investment advisors are
required to conduct annual reviews to determine whether it remains in the client’s best interest to remain
enrolled in the wrap fee programs.
ASSETS UNDER MANAGEMENT
When calculating regulatory assets under management, an investment advisor must include the value of
any advisory account over which it exercises continuous and regular advisory or management services. As
of December 31, 2023, Oakwood Capital reports $21,841,438 in client assets on a discretionary basis and
$198,958,707 on a non-discretionary basis. The client assets total $220,800,145.