First American Asset Advisory offers investment management services to its clients. Prior to
First American Asset Advisory rendering any of the foregoing advisory services, clients are
required to enter into one or more written agreements with First American Asset Advisory
setting forth the relevant terms and conditions of the advisory relationship (the “Advisory
Agreement”).
First American Asset Advisory first filed for registration as an investment adviser in April 2016
and is owned by Paul Metz and Michael Finnan. Paul Metz, President, provides advisory
services as investment adviser representative of the Firm. Michael Finnan, Chief Compliance
Officer, provides advisory services as investment adviser representative of the Firm. The Firm’s
assets under management as of 12/31/2023 were $99,666,024.
While this brochure generally describes the business of First American Asset Advisory, certain
sections also discuss the activities of its Supervised Persons, which refer to the Firm’s officers,
partners, directors (or other persons occupying a similar status or performing similar functions),
employees or any other person who provides investment advice on First American Asset
Advisory’s behalf and is subject to the Firm’s supervision or control.
Investment Management Services
First American Asset Advisory manages client investment portfolios on a discretionary and non-
discretionary basis. First American Asset Advisory primarily allocates client assets among
various mutual funds, exchange-traded funds (“ETFs”), individual debt and equity securities,
and independent investment managers (“Independent Managers”) in accordance with the
stated investment objectives of the particular client.
Where appropriate, the Firm may also provide advice about certain legacy positions or other
investments held in client portfolios. Clients may engage First American Asset Advisory to
manage and/or advise on certain investment products that may not be under the management
of First American Asset Advisory, such as variable life insurance and annuity contracts and
assets held in employer sponsored retirement plans and qualified tuition plans (i.e., 529 plans).
In these situations, First American Asset Advisory may direct or recommend the allocation of
client assets among the various investment options available with the product. These assets are
generally maintained at the underwriting insurance company or the custodian designated by
the product’s provider.
First American Asset Advisory tailors its advisory services to meet the needs of its individual
clients and seeks to ensure, on a continuous basis, that client portfolios are managed in a
manner consistent with those needs and objectives. First American Asset Advisory consults with
clients on an initial and ongoing basis to assess their specific risk tolerance, time horizon,
liquidity constraints and other related factors relevant to the management of their portfolios.
Clients are advised to promptly notify First American Asset Advisory if there are changes in their
financial situation or if they wish to place any limitations on the management of their
portfolios. Clients may impose reasonable restrictions or mandates on the management of their
accounts if First American Asset Advisory determines, in its sole discretion, the conditions
would not materially impact the performance of a management strategy or prove overly
burdensome to the Firm’s management efforts.
Use of Independent Managers
As mentioned above, First American Asset Advisory may select certain Independent Managers
to actively manage a portion of its clients’ assets. The specific terms and conditions under
which a client engages an Independent Manager may be set forth in a separate written
agreement with the designated Independent Manager. In addition to this brochure, clients may
also receive the written disclosure documents of the respective Independent Managers
engaged to manage their assets.
First American Asset Advisory evaluates a variety of information about Independent Managers,
which may include the Independent Managers’ public disclosure documents, materials supplied
by the Independent Managers themselves and other third-party analyses it believes are
reputable. To the extent possible, the Firm seeks to assess the Independent Managers’
investment strategies, past performance and risk results in relation to its clients’ individual
portfolio allocations and risk exposure. First American Asset Advisory also takes into
consideration each Independent Manager’s management style, returns, reputation, financial
strength, reporting, pricing and research capabilities, among other factors.
First American Asset Advisory continues to provide services relative to the discretionary
selection of the Independent Managers. On an ongoing basis, the Firm monitors the
performance of those accounts being managed by Independent Managers. First American Asset
Advisory seeks to ensure the Independent Managers’ strategies and target allocations remain
aligned with its clients’ investment objectives and overall best interests.
RBC Unified Portfolio (RBC UP) – formerly the Resource II Program
RBC UP is a UMA program through which accounts are professionally managed by RBC
Correspondent Services (“RBC CM”) as Overlay Manager or a third-party Overlay Manager,
Envestnet Asset Management, Inc. ('Envestnet"). The Overlay Manager manages the account
through investments in mutual funds, exchange traded products ("ETPs"), and/or in accordance
with one or more model portfolios, provided by Model Providers (as defined in the RBC
Advisory Master Services Agreement for this program) or RBC CM, all in a single account.
Please be sure to review the disclosure documents provided by RBC regarding these accounts
and updates.
Rebalancing
If the RBC Unified Portfolio is used as an investment vehicle your account is reviewed regularly
by the Overlay Manager and rebalanced on a discretionary basis to ensure your account does
not deviate from the selected investment strategy. Upon the establishment of your account(s)
in the RBC UP program, your account's investment allocation will be reviewed or evaluated for
rebalance on a periodic basis. For more information regarding rebalancing frequency options
and methodology, please refer to the RBC Disclosure Brochure.
The RBC UP Program is a wrap fee Program sponsored by RBC Capital Markets and offered
through RBC Clearing & Custody, a division of RBC Capital Markets Corporation, Member
NYSE/FINRA/SIPC ("RBC"). First American Asset Advisory may recommend and refer its clients
to various third-party money managers available through the RBC UP Program (the "Program").
The Firm will assist clients with the identification of investment objectives through various
reviews and will assist clients in the selection of appropriate money managers available through
the Program. Client accounts may also be invested in model portfolios provided by third party
money managers (called Overlay Managers) available through the Program. Clients may grant
First American Asset Advisory the authority
to select or re-allocate client’s assets amongst third
party managers on a discretionary or non-discretionary basis.
The money managers selected under the Programs 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.
RBC UP is a wrap fee program 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's
Program Brochure. Clients should refer to RBC’s disclosure brochure for additional information
regarding the Program.
Wrap Fee Programs may not be 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, Wrap Fee Accounts may not be suitable for accounts with little activity.
Participating in a Wrap Fee Program may cost more or less than the cost of purchasing
such services separately from a broker-dealer.
First American Asset Advisory receives compensation as a result of the client’s participation in
these accounts which may be more that what First American Asset Advisory would receive if
the client paid separately for investment advice, brokerage and other services.
In determining whether to establish an RBC UP 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
separately the types of securities available in the Program.
Clients will be charged a fee which is billed quarterly in advance based on the asset value of the
account at the end of the previous quarter. Fees will be assessed pro rata in the event the client
agreement is executed at any time other than the first day of a calendar quarter. This fee
includes First American Asset Advisory's fees, commissions and transaction costs (with the
exception of certain fees stated in RBC's Program Brochure) as well as the third-party
managers’ fees. On an annualized basis, sample fees for the RBC UP, subject to negotiation, are
calculated based on the amount invested and the investment programs selected.
Payment of fees will be made by the qualified custodian holding the client’s funds and
securities provided the client supplies written authorization permitting the fees to be paid
directly from the account. First American Asset Advisory will not have access to client funds for
payment of fees without written consent by the client. Further, the qualified custodian agrees
to deliver a quarterly account statement directly to the client, showing all disbursements from
the account. The client is encouraged to review all account statements for accuracy.
First American Asset Advisory or RBC may terminate the Program agreement within five days of
the date of acceptance without penalty to the client. After the five-day period, either party may
terminate the agreement. Termination is effective upon receipt of written notice. The
management fee will be pro-rated for the quarter in which the cancellation notice was given,
and any unearned fees will be refunded to the client.
The RBC Advisor Account
The Advisor Account is a Wrap Fee Program sponsored by RBC Clearing & Custody, a division of
RBC Capital Markets Corporation, Member NYSE/FINRA/SIPC (“RBC”) 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 Program Brochure. The RBC Advisor Account is a non-discretionary
account whereby an IAR of the Firm will assist the client in developing a portfolio of
investments including stocks, bonds, mutual funds, ETFs and other securities.
First American Asset Advisory 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 that the IAR believes possess investment characteristics that are
consistent with your risk profile. If the investment strategy will be implemented with mutual
funds only, you select from the various eligible mutual funds and specify, in writing, the mutual
funds in which account assets are to be invested and the allocation among those funds. This
written fund allocation may subsequently be modified by you by notifying our firm. It is your
responsibility to advise our firm at such times as you determine rebalancing should occur.
Neither RBC CM nor our firm has discretionary authority with respect to the Program account;
however, if your investment allocation includes a mutual fund share class, we deem to be
ineligible for the Program, we may update the allocation to include the equivalent, eligible
share class of the same mutual fund without notification to you. You have sole discretion to
accept or reject an investment strategy or any specific recommendation to purchase, sell, or
redeem securities.
An Advisor account is not for day trading or excessive trading, including trading in securities
based on market timing, and accounts may be restricted or terminated at the discretion of RBC
CM upon written notice to you.
The Firm will not act as a portfolio manager in the Advisor account whereby it would have
discretionary authority but rather on a non- discretionary basis, work with clients to develop a
portfolio of various investments if the fee structure offered in this type of account is
appropriate for the client.
Clients should refer to RBC’s disclosure brochure for additional information regarding Advisor
Account.
• Wrap Fee Programs may not be 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, Wrap Fee Accounts may not be suitable for accounts with little activity.
Participating in a Wrap Fee Program may cost more or less than the cost of purchasing
such services separately from a broker-dealer.
• The Firm receives compensation as a result of the client’s participation in Advisor
Account which may be more that what The Firm would receive if the client paid
separately for investment advice, brokerage and other services.
• The Firm may have a financial incentive to recommend Advisor Account over other
programs and services.
In determining whether to establish a Program 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
separately the types of securities available in the Program.