Firm Description
Sundvold Capital Management LLC, (Sundvold Financial) was founded in
1997 as a fee-only financial planning and investment advisory firm.
Sundvold Financial provides personalized confidential financial planning and
investment management to individuals, pension and profit-sharing plans,
trusts, estates, charitable organizations and small businesses. Advice is
provided through consultation with the client and may include: determination
of financial objectives, identification of financial problems, cash flow
management, insurance review, investment management, education funding,
retirement planning and estate planning.
Sundvold Financial believes that objectivity is the single most important
quality a consulting firm can bring to the client, so we have structured our firm
to minimize potential "conflicts of interest". It is for this reason we do not
accept soft dollar payments of any form, we do not sell proprietary products
and we do not accept payment from money managers. Sundvold Financial
also operates as an independent insurance agent representing numerous
companies. We may offer health and life insurance from these companies
and receive commissions as a result of such purchases. A conflict of interest
may exist when the representative of Sundvold Financial recommends that a
client purchase an insurance product that results in compensations being paid
to them as an independent insurance agent. Clients are free to purchase
insurance from other firms, if they deem that in their best interest.
Our practice begins and ends with the needs of the client. It is process driven.
Solutions can be developed only after appropriate data (both quantitative and
qualitative) have been gathered and evaluated. Related issues should be
identified and clients should be directed to other appropriate professionals for
resolution. Implementation, continuous monitoring, and as necessary,
modification are an integral part of the process.
A written evaluation of each client's initial situation is provided to the client,
often in the form of a net worth statement. Periodic reviews are also
communicated to provide reminders of the specific courses of action that
need to be taken.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the client on an as-needed basis. Conflicts of interest will
be disclosed to the client in the unlikely event they should occur.
Sundvold Financial also provides investment advice to participants in defined-
contribution retirement plans (i.e., 401(k) and 403(b) whose employers (i.e.
plan sponsors) have contracted with Sundvold to provide such services, or in
the case where Sundvold has been appointed as an ERISA 3(38) investment
fiduciary by a named ERISA 3(21) fiduciary.
Principal Owners
Jon Sundvold is principal owner.
Types of Advisory Services
Sundvold Financial provides investment supervisory services, also known as
asset management services, manages investment advisory accounts not
involving investment supervisory services and furnishes investment advice
through consultations.
Sundvold Financial also furnishes advice to clients on matters not involving
securities, such as financial planning matters, taxation issues and trust
services that often include estate planning.
As of December 31,2023, Sundvold Financial manages approximately
$_482,000,000 in assets under advisement with $209,000,000 being
regulatory assets recognized by the Securities Exchange Commission. 100%
of assets under management are managed on a non-discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in our client
relationship management system. Investment policy statements are created
that reflect the stated goals and objective. Clients may impose restrictions on
investing in certain securities or types of securities.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
A financial plan is generally designed to help the client with all aspects of
financial planning without ongoing investment management after the financial
plan is completed. At Sundvold Financial the focus is on the implementation
of that plan and the ongoing accountability we expect from our clients
pertaining to the financial plan.
The financial plan may include, but is not limited to: a net worth statement; a
cash flow statement; a review of investment accounts, including reviewing
asset allocation and providing repositioning recommendations; strategic tax
planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning
review and recommendations; and education planning with funding
recommendations,
debt management and reduction planning, savings
strategies and direction.
Detailed investment advice and specific recommendations are provided as
part of a financial plan.
The fee for a financial plan is predicated upon the facts known at the start of
the engagement. The minimum fee is $1,500. Since financial planning is a
discovery process, situations occur wherein the client is unaware of certain
financial exposures or predicaments. In the event that the client’s situation is
substantially different than disclosed, a revised fee will be provided for mutual
agreement. The client must approve the change of scope in advance of the
additional work being performed when a fee increase is necessary.
Advisory Service Agreement
Most clients choose to have Sundvold Financial manage their assets in order
to obtain ongoing in-depth advice and life planning. All aspects of the client’s
financial affairs are reviewed. Realistic and measurable goals are set and
objectives to reach those goals are defined. As goals and objectives change
over time, suggestions are made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to
the client in writing prior to the start of the relationship. An Advisory Service
Agreement can include: cash flow management; insurance review;
investment management (including performance reporting); education
planning; retirement planning and estate planning, as well as the
implementation of recommendations within each area.
The annual Advisory Service Agreement fee is based on a percentage of the
investable assets according to the following schedule:
1.00% on the first $1 million
0.80% on the next $4 million;
0.60% on the next $5 million:
0.40% on the next $10 million; and
0.30% above $20 million.
Current client relationships may exist where the fees are higher or lower than
the fee schedule above.
Although the Advisory Service Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client, or the investment manager, may terminate an
Agreement by written notice to the other party. At termination, fees will be
billed on a pro rata basis for the portion of the quarter completed. The
portfolio value at the completion of the prior full billing quarter is used as the
basis for the fee computation, adjusted for the number of days during the
billing quarter prior to termination.
Retainer Agreement
When it is more appropriate to work on a fixed-fee basis, a Retainer
Agreement is executed in lieu of an Advisory Service Agreement. The
minimum annual fee for a Retainer Agreement is $ 1,500.
Investment Management Agreement
An Investment Management Agreement may be executed when financial
planning is not provided as part of the relationship. The minimum annual fee
for an Investment Management Agreement is $1,500.
Hourly Planning Engagements
Sundvold Financial provides hourly planning services for clients who need
advice on a limited scope of work. The minimum hourly rate for limited scope
engagements is $200.
Asset Management
Assets are invested primarily with institutional money managers, from
Sundvold Financial research, and in no-load and exchange-traded funds.
This is done through discount brokers or fund companies. Fund companies
charge each fund shareholder an investment management fee that is
disclosed in the fund prospectus. Discount brokerages may charge a
transaction fee for the purchase of some funds.
Stocks and bonds may be purchased or sold through a discount brokerage
account when appropriate. The discount brokerage firm charges a
transaction fee for stock and bond trades. Sundvold Financial does not
receive compensation, in any form, from fund companies or brokerages.
Investments may also include: equities (stocks), warrants, corporate debt
securities, commercial paper, certificates of deposit, municipal securities,
investment company securities (variable life insurance, variable annuities,
and mutual funds shares), U. S. government securities, futures contracts, and
interests in partnerships.
Initial public offerings (IPOs) are not available through Sundvold Financial.
Termination of Agreement
A Client may terminate any of the aforementioned agreements, at any time,
by notifying Sundvold Financial in writing. The client will pay the rate for the
time spent on the investment advisory engagement prior to notification of
termination. If the client made an advance payment, Sundvold Financial will
refund any unearned portion of the advance payment.
Sundvold Financial may terminate any of the aforementioned agreements, at
any time, by notifying the client in writing. If the client made an advance
payment, Sundvold Financial will refund any unearned portion of the advance
payment.