Firm Description
FAI is an investment adviser providing investment advisory services on a discretionary basis for
a variety of clients, including individuals, high net worth individuals, pension and profit-sharing
plans, trusts, and estates, charitable organizations, and various for-profit business entities. FAI
also provides clients with an opinion regarding the suitability of their current investment
strategy as well as the investments selected to achieve those stated objectives without further
management. In addition, FAI also provides tax advice including income tax preparation, where
suitable. FAI was founded in 1989.
Principal Owners
FAI’s principal owner is Dennis P. Fagan, President, Chief Compliance Officer, and Portfolio
Manager.
Types of Advisory Services
FAI offers the following types of advisory services: Financial planning services and portfolio
management for individuals and/or small business.
Investment Advisory Services
FAI provides investment advisory services, defined as giving continuous advice to a client, and
selecting investments for a client based on the individual needs of the client. Through personal
discussions, goals and objectives are established based on a client’s particular circumstances.
FAI assists the client in developing the client’s personal investment policy, and then creates and
manages a portfolio based on that policy. Services may be provided on a discretionary or non-
discretionary basis.
Clients establish accounts only after meeting with a Portfolio Manager (Dennis P. Fagan) where
financial data will be obtained. The interview(s) will also include a discussion of the goals of the
client, their current financial position, tolerance to risk, family specifics and health information
as well as a discussion of employer sponsored plans, where applicable. Each client is advised
that it remains his/her responsibility to promptly notify FAI of any changes to their respective
financial situation and consequently, their investment objectives.
FAI develops portfolios based upon a client’s goals, objectives, investment time horizon and risk
tolerance, as well as their core financial-related values. Investment strategies generally include
long-term and short-term purchases depending upon the individual needs of the client. FAI uses
asset allocation or spreading investments among a number of asset classes and sectors
(domestic stocks vs. foreign stocks; large cap stocks vs. small cap stocks; corporate bonds vs.
government securities) for most client portfolios.
Financial Planning Services
FAI offers financial planning services, which may include a review of all aspects of a client’s
current financial situation, including the following components: cash management, risk
management, insurance, education funding, goal setting, retirement planning, estate and
charitable giving planning, tax planning, and capital needs planning. FAI meets with the client to
review risk tolerance, financial goals and objectives, and time horizons. Additional meetings
may include a review of additional financial information; sources of income, assets owned,
existing insurance, liabilities, wills, trusts, business agreements, tax returns, investments, and
personal and family obligations.
Financial planning clients may receive a written report, providing a detailed financial plan
designed to achieve their stated financial goals and objectives.
FAI gathers required information through in-depth personal interviews. Information gathered
includes a client’s current financial status, future goals and attitudes towards risk. Related
documents including a questionnaire completed by the client, supplied by the client are
carefully reviewed, and a
written report is prepared. If a client chooses to implement the
recommendations contained in the plan, FAI suggests the client work closely with his/her
attorney, accountant, insurance agent, and/or stockbroker. Implementation of financial plan
recommendations is entirely at the client’s discretion.
Financial planning recommendations are not limited to any specific product or service offered
by a broker dealer or insurance company.
Financial planning services may be integrated or may focus on certain components. Clients
understand that when FAI is engaged to address only certain components, the client’s overall
financial and investment issues may not be taken into consideration. FAI generally does not
charge a separate fee for financial planning services.
Tailored Relationships
FAI tailors investment advisory services to the individual needs of the client. The goals and
objectives for each client are documented in our client relationship management system. FAI
clients are allowed to impose restrictions on the investments in their account. FAI may accept
any reasonable limitation or restriction to discretionary authority on the account placed by the
client. All limitations and restrictions placed on accounts must be presented to FAI in writing.
Fiduciary Statement
We are fiduciaries under the Investment Advisers Act of 1940 and when we provide investment
advice to you regarding your retirement plan account or individual retirement account, we are
also fiduciaries 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.
We have to act in your best interest and not put our interest ahead of yours. At the same time,
the way we make money creates some conflicts with your interests. We must take into
consideration each client’s objectives and act in the best interests of the client. We are
prohibited from engaging in any activity that is in conflict with the interests of the client. We
have the following responsibilities when working with a client:
• To render impartial advice;
• To make appropriate recommendations based on the client’s needs, financial
circumstances, and investment objectives;
• To exercise a high degree of care and diligence to ensure that information is presented
in an accurate manner and not in a way to mislead;
• To have a reasonable basis, information, and understanding of the facts in order to
provide appropriate recommendations and representations;
• Disclose any material conflict of interest in writing; and
• Treat clients fairly and equitably.
Regulations prohibit us from:
• Employing any device, scheme, or artifice to defraud a client;
• Making any untrue statement of a material fact to a client or omitting to state a material
fact when communicating with a client;
• Engaging in any act, practice, or course of business which operates or would operate as
fraud or deceit upon a client; or
• Engaging in any manipulative act or practice with a client.
We will act with competence, dignity, integrity, and in an ethical manner, when working with
clients. We will use reasonable care and exercise independent professional judgement when
conducting investment analysis, making investment recommendations, trading, promoting our
services, and engaging in other professional activities.
Wrap Fee Programs
FAI does not participate in a Wrap Fee Program.
Client Assets
As of January 24, 2023, FAI manages $583,233,874 in assets under management; $580,968,876
is managed on a discretionary basis, and $2,265,798 is managed on a non-discretionary basis.