A. Korving & Company LLC (“Korving & Co.” “we” “us”) is a Virginia limited liability company
founded in January 2010, by our principal owners, Arie J. Korving, who serves as our Chairman,
and Stephen J. Korving, who serves as our President. Korving & Co. was previously registered
with various state securities commissions and has been registered as an investment adviser with the
United States Securities and Exchange Commission since April 2021.
B. Korving & Co. offers investment advisory services, financial planning and related consulting
services to its clients as further described in this Brochure.
INVESTMENT ADVISORY SERVICES
Clients can engage Korving & Co. to provide discretionary investment advisory services on a fee
basis. However, we occasionally make exceptions and manage client portfolios on a non-
discretionary basis. Korving & Co.’s annual investment advisory fee is based on a percentage of
the market value of the assets placed under its management. When engaging Korving & Co. to
provide investment advisory services, clients enter into an Investment Advisory Agreement with
Korving & Co. setting forth the terms and conditions of the engagement, describing the scope of
the services to be provided, and the fee that is due from the client. Korving & Co.’s annual
investment advisory fee compensates for investment advisory services and general financial
planning and consulting services that are ancillary to the investment advisory process, which
typically relate to account performance as compared to established financial goals and risks. If
Korving & Co. determines in its sole discretion that a client is seeking or requires financial planning
and consultation services that exceed the anticipated scope of the engagement, Korving & Co. may
seek to provide those services to the client under the terms and conditions of a separate agreement.
Korving & Co. tailors its investment advisory services to the needs of each client. Our focus is on
helping them achieve your personal long terms goals which may include a comfortable retirement,
a second home, a college education for your children, leaving a legacy, or making charitable
bequests. For our retired clients we develop and implement strategies designed to generate
sustainable retirement income.
To begin the engagement, an investment adviser representative will coordinate with each client to
develop their investment objectives which are based upon an assessment of factors that typically
include: capital preservation; risk tolerance; income production; liquidity requirements; client
preferences; asset and liability levels; and investment restrictions. Then, Korving & Co. will
allocate or recommend that the client allocate investment assets consistent with the designated
investment objectives. Korving & Co. primarily allocates or recommends that clients allocate
investment assets among stock and bond mutual funds, exchange traded funds (“ETFs”), global
and foreign mutual funds, CDs, government, municipal and corporate bonds, common stocks,
preferred stocks, and equity options.
Once client investment assets are allocated, Korving & Co. provides ongoing monitoring and
review of account performance and asset allocation as compared to client-designated investment
objectives and may execute or recommend executing account transactions as a result of those
reviews or upon other triggering events.
Korving & Co. may recommend that the client allocate a portion of a client’s investment assets
among unaffiliated independent investment managers (“Independent Managers”) in accordance
with the client’s designated investment objectives. In such situations, the Independent Managers
will have day-to-day responsibility for the active discretionary management of the allocated assets.
Korving & Co. will continue to provide investment supervisory services to the client relative to the
ongoing monitoring and review of account performance, asset allocation, and client investment
objectives. Korving & Co. generally considers the following factors when recommending
Independent Managers: the client’s designated investment objectives, management style,
performance, reputation, financial strength, reporting, pricing, and research. The investment
management fees charged by the designated Independent Managers are exclusive of, and in
addition to, Korving & Co.’s ongoing investment advisory fee, subject to the terms and conditions
of a separate agreement between the client and the Independent Managers.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
Upon specific client request, Korving & Co. may agree to provide financial planning and consulting
services on a stand-alone separate fee basis. Before engaging Korving & Co. in this capacity, clients
enter into a separate agreement with Korving & Co. setting forth the terms and conditions of the
engagement, describing the scope of the services to be provided, and the portion of the fee that is
due from the client before Korving & Co. will begin to provide services. Some of the financial
planning services we offer could include preparation and/or analyses of:
• Personal financial statements;
• Budgets and cash flows;
• Investment strategies and plans;
• Retirement goals and objectives;
• Family educational needs;
• Risk management and insurance needs;
• Alternative investment strategies;
• Estate planning and review; and
• Professional/business strategies, including stock options, deferred compensation, etc.
MISCELLANEOUS
Limitations of Financial Planning and Non-Investment Consulting/Implementation Services. To
the extent requested by a client, Korving & Co. may provide consulting services regarding non-
investment related matters, such as estate planning, tax planning, insurance, etc. Korving & Co.
does not serve as a law firm, accounting firm, or insurance agency, and no portion of Korving &
Co.’s services should be construed as legal, accounting, or insurance implementation services.
Unless specifically agreed in writing, neither Korving & Co. nor its representatives are responsible
to implement any financial plans or financial planning advice; provide ongoing financial planning
services; or provide ongoing monitoring of financial plans or financial planning advice. The client
is solely responsible to revisit the financial plan or financial planning advice with Korving & Co.,
if desired. Korving & Co.’s financial planning and consulting services are completed upon
communicating its recommendations to the client, upon delivery of the written financial plan, or
upon termination of the applicable agreement. The client retains absolute discretion over all
financial planning and related implementation decisions and is free to accept or reject any
recommendation from Korving & Co. and its representatives in that respect. To the extent requested
by a client, Korving & Co. may recommend the services of other professionals for certain non-
investment implementation purposes (i.e., attorneys, accountants, insurance agents, etc.). Clients
are under no obligation to engage the services of any recommended professional, who are
responsible for the quality and competency of the services they provide.
Retirement Plan Rollovers – No Obligation / 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
Korving & Co. recommends that a client roll over their retirement plan assets into an account to be
managed by Korving & Co., such a recommendation creates a conflict of interest if Korving & Co.
will earn a new (or increase its current) advisory fee as a result of the rollover. No client is under
any obligation to roll over plan assets to an IRA managed by Korving & Co. or to engage Korving
& Co. to monitor and/or manage the account while maintained at the client’s employer.
ERISA / IRC Fiduciary Acknowledgment. When Korving & Co. provides investment advice to a
client about the client’s retirement plan account or individual retirement account, it does so as a
fiduciary within the meaning of Title I of the Employee Retirement Income Security Act
(“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable, which are laws governing
retirement accounts. Because the way Korving & Co. makes money creates some conflicts with
client interests, Korving & Co. operates under a special rule that requires it to act in the client’s
best interest and not put its interests ahead of the client’s. Under this special rule’s provisions,
Korving & Co. must: meet a professional standard of care when making investment
recommendations (give prudent advice); never put its financial interests ahead of the client’s when
making recommendations (give loyal advice); avoid misleading statements about conflicts of
interest, fees, and investments; follow policies and procedures designed to ensure that Korving &
Co. gives advice that is in the client’s best interest; charge no more than is reasonable for Korving
& Co.’s services; and give the client basic information about conflicts of interest.
Mutual Fund Share Class Selection Policy. Korving & Co. maintains a share class selection policy
that it follows when making investment recommendations and selecting investments for
discretionary client accounts. This policy is subject to periodic review and may change from time
to time, without notice to clients. Ultimately, our policy is intended to purchase the most
appropriate share class available. When Korving & Co. purchases a mutual fund for a client
account, it will generally select an institutional share class when the purchase price plus any existing
client holdings in that fund equals $30,000 or more. In all other instances, because Korving & Co.
believes in and practices quasi-active investment management, it will typically select the retail
share class or other share class that does not impose transaction fees to acquire the share class.
Korving & Co. will also review client mutual fund holdings periodically and pursue tax-free
conversions (if available) to an institutional share class if client holdings in a particular fund exceed
$30,000, or if Korving & Co. becomes aware of that a lower-cost share class becomes available. If
a client only has holdings in institutional share classes, then Korving & Co. will sell those holdings
if a client requests a distribution. Although the different share class does not impact the fund’s
management style or objective, the client will incur higher annual expenses for the retail class
shares (approximately 0.25% of the client’s assets in the fund). Korving & Co. has conducted
analysis of a its clients’ accounts and has reason to believe that this policy reduces its clients’
investment expenses, but there is no guarantee that this policy will result in lower investment
expenses for any individual client.
Asset Aggregation / Reporting Services. Korving & Co. may provide access to reporting services
through one or more third-party aggregation / reporting platforms that can reflect all of the client’s
investment assets, including those investment assets that the client has not engaged Korving & Co.
to manage (the “Excluded Assets”). Korving & Co.’s service for the Excluded Assets is strictly
limited to reporting, and specifically excludes investment management or implementation. Because
Korving & Co. does not have trading authority for the Excluded Assets, the client (and/or a
designated investment professional), and not Korving & Co., will be exclusively responsible for
directly implementing any recommendations for the Excluded Assets and the resulting performance
or related activity (such as timing and trade errors) pertaining to the Excluded Assets. The third-
party aggregation / reporting platforms may also provide access to financial planning information
and applications, which should not be construed as services, advice, or recommendations provided
by Korving & Co. Accordingly, Korving & Co. will not agree to be responsible for any adverse
results a client may experience if the client engages in financial planning or other functions
available on the third party reporting platforms without Korving & Co.’s participation or oversight.
Client Obligations. When performing its services, Korving & Co. is not required to verify any
information received from the client or from the client’s designated professionals and is expressly
authorized to rely on that information. Clients are responsible to promptly notify Korving & Co. if
there is ever any change in their financial situation or investment objectives for the purpose of
reviewing or amending Korving & Co.’s services or previous recommendations.
Portfolio Trading Activity / Inactivity. As part of its investment advisory services, Korving & Co.
will review client portfolios on an ongoing basis to determine if any trades are necessary based
upon various factors, including but not limited to investment performance, market conditions, fund
manager tenure, style drift, account additions/withdrawals, the client’s financial circumstances, and
changes in the client’s investment objectives. Based upon these and other factors, there may be
extended periods when Korving & Co. determines that upon review, trades within a client’s
portfolio are not prudent. Clients nonetheless remain subject to the fees described in Item 5 during
periods of portfolio trading inactivity.
C. Korving & Co. provides investment advisory services specifically tailored to the needs of each
client. Before providing investment advisory services, an investment adviser representative will
coordinate with each client to develop their investment objectives. Then, Korving & Co. allocates
or recommends that clients allocate investment assets consistent with the designated investment
objectives. The client may, at any time, impose reasonable restrictions, in writing, on Korving &
Co.’s services.
D. Korving & Co. does not participate in a wrap fee program.
E. As of December 31, 2023, Korving & Co. had $124,647,324 in client assets under management on
a discretionary basis, and $1,971,722 in client assets under management on a non-discretionary
basis.