A. Founded in May 1984, Fiduciary Capital Advisors, Inc. (FCA), a C Corporation is
100% owned by its President, James C. Garrels. FCA, an investment management
consulting firm, has two other employees, one of whom is involved solely in
client service while the other employee is involved in the production of
performance measurement reports and research.
B. FCA’s major consulting services are:
1. Assistance with the formulation and/or review of a Statement of Investment
Policy, Guidelines and Objectives.
2. Assistance with the selection of investment managers, primarily mutual
funds and separate account managers.
3. Investment Performance Measurement - clients receive quarterly statistical
review of their total portfolio as well as the performance of each fund
manager. Report review is generally conducted quarterly, in person.
Historically, FCA has been asked for assistance in reviewing related matters, e.g.,
assistance with selecting custodian banks, actuaries, or other matters of interest to
the client such as alternative investments, e.g.
C. The needs of each client are addressed in the Statement of Investment Policy,
Guidelines, and Objectives. Clients may impose restrictions on investing in
certain securities or types of securities. FCA recommends a review of this
document at least annually or more often if needed. The Statement of Investment
Policy, Guidelines, and Objectives generally covers the following:
a. Purpose and Priorities
b. Investment Alternatives
c. Asset Mix
d. Diversification
e. Investment Objectives
f. Asset Allocation - Targets and Ranges for Asset Classes and Rebalancing
Policy
g. Benchmarks for Performance Measurement Comparisons
h. Permitted and Prohibited Activity for Asset Classes and Fund Managers
i. Reporting - Covered Areas and Frequency
j. Investment Manager Specifications (Growth, Value, Fixed Income, etc.)
k. Fund Manager Termination Conditions Defined
Part 2A of Form ADV Page 4 of 11
D. FCA does not and never has participated in any kind of wrap fee program.
E. Client assets (same as 5.F in ADV Part 1A) managed (as of 6-30-2019):
Discretionary: $ 0
Non-Discretionary: $ 331,894,525
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A. All fees are negotiable based on frequency of visits, scope of work, etc. Fees may
be asset based or fixed or asset based with a fixed minimum. Fees generally
adhere to the following:
For Institutional clients:
3/10 of 1% of market value up to $10,000,000
2/10 of 1% of market value on the next $10,000,000
1/10 of 1% above $20,000,000
Minimum annual fee: $30,000
For high net worth individuals:
1/2 of 1% of market value up to $10,000,000
4/10 of 1% on the next $10,000,000
3/10 of 1% above $20,000,000
Minimum annual fee: $5,000
B. Fees for high net worth individuals and institutional clients are prorated quarterly
and billed in arrears. FCA does not have and never has had the authority to deduct
fees from client accounts. Clients may, however, provide written authorization to
their custodian to pay our invoice if FCA provides a copy of client’s invoice to
the custodian.
C. FCA’s fees include all services provided. There are no additional fees for
manager searches, etc.
D. FCA’s fees are prorated quarterly and billed in arrears. Should a client
relationship end during the quarter, billing is prorated daily to the date of
termination.
E. FCA does not accept compensation of any kind other than directly from clients.
When mutual funds are involved, FCA uses only no-load funds.
Part 2A of Form ADV Page 5 of 11
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FCA does not accept performance based fees of any kind and does not participate
in any way in any side-by-side management arrangement.
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FCA currently provides investment advice to pension plans of corporate and
governmental entities as well as high net worth individuals.
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A. B. Neither FCA nor any management person of FCA is registered as a broker
dealer or has an application pending to become a broker dealer or a representative
of a broker dealer, futures commission merchant, commodity pool operator, a
commodity trading advisor, or an associated person of the foregoing entities. FCA
is also not affiliated, owns or owned by, in any manner, any bank, broker, actuary,
insurance company, investment advisor, or pension consultant.
Part 2A of Form ADV Page 6 of 11
C. FCA has a written agreement with Segal Marco Advisors, Inc., a pension
consulting firm headquartered in New York City to purchase FCA’s client
accounts in the event of the death or permanent disability of James C. Garrels,
President and sole shareholder of FCA. This agreement, in FCA’s opinion, poses
no conflict of interest for FCA’s clients because:
1. In the event of retirement, death or permanent disability of James Garrels,
FCA’s clients would make the decision to transition to Sageview or not.
2. There is no affiliation of any kind between FCA and Sageview (no
ownership or option to own or control the other or any other kind of
connection).
3. No consideration (money, stock, e.g.) changed hands between FCA and
Sageview before, during, or since execution of the agreement.
4. The agreement may be terminated at any time by either party without
cause.
D. FCA does not and never has, by policy, received compensation, either directly or
indirectly, from advisors or from any entity other than clients.
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Personal Trading A. Code of Ethics
Each Fiduciary Capital Advisors, Inc. employee should conduct himself (masculine
pronouns used herein to simplify sentence structure, shall apply to all persons
regardless of sex) with integrity and dignity and act in an ethical manner in his
dealings with the public, clients, customers, employers and fellow employees.
Each Fiduciary Capital Advisors, Inc. employee should conduct himself in a
professional and ethical manner that will reflect credit on himself and the Firm.
Each Fiduciary Capital Advisors, Inc. employee should at all times, use proper care
and exercise independent professional judgment.
In addition to FCA’s Code of Ethics, FCA has a Standards of Conduct Statement
which covers:
I. Compliance with Governing Laws and Regulations
a. Required Knowledge and Compliance
b. Prohibition Against Assisting Legal and Ethical Violations
c. Prohibition Against Use of Material Non-Public Information
Part 2A of Form ADV Page 7 of 11
June 30, 2019
d. Prohibition Against Misrepresentation of Services
e. Fair Dealing with Customers and Clients
f. Prohibition Against Employees of FCA Purchasing Securities
Recommended to Clients includes:
1. Transactions for family members (includes spouses,
brothers, sisters, parents or parents in law, brothers/sisters
in law, or family equivalents.
2. Transactions in accounts of beneficial interest (employee or
family member is income or principal beneficiary of a
trust).
II. Relationships with Others
a. Preservation of Confidentiality
b. Fiduciary Duties
The full text of the Standards of Conduct Statement is available on request by e-mail
contact at [email protected] or by phone (908) 419-9459. B. –D. FCA’s policy is that no employee may own at any time any security of any
kind of which clients own or which are recommended to clients.
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A. B. FCA does not recommend broker dealers for client transactions at any time or
consult as to the reasonableness of their compensation. FCA does not ever receive
its compensation by directed brokerage at any time.
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A. –C. All clients receive quarterly written narrative and statistical reviews, delivered
and reviewed in person with the client by James C. Garrels, President of FCA. All
client portfolio returns are calculated monthly from information derived from the
client’s custodian monthly asset statement and monthly transaction ledger. The
information provided the client in the quarterly report is presented in a manner to
inform the client whether short, intermediate, and longer term investment
objectives are being met, as set forth in the client’s Statement of Investment
Policy, Guidelines, and Objectives.
Part 2A of Form ADV Page 8 of 11
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A. B. FCA does not compensate or receive compensation from any entity of any kind
for client referrals or any other economic benefit.
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A. B. FCA, by policy, does not vote and will not accept authority to vote the proxies
of client securities. Clients generally receive proxies and other solicitations
directly from their custodian or transfer agent, not from FCA. FCA would
generally not be able to provide informed responses to client inquiries regarding
this issue.
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A. –C. Due to FCA not requiring or soliciting prepayment of fees, discretionary
authority over client funds or securities, or custody of client funds or securities,
FCA is not required to include a balance sheet of our most recent fiscal year. FCA
has not been the subject of a bankruptcy petition at any time during the past ten
years and does not believe it has any financial condition that is reasonably likely
to impair FCA’s ability to meet its financial obligations.
Part 2A of Form ADV Page 9 of 11
Item 19 – Requirements for State Registered Advisors
FCA is registered with one or more state securities authorities. FCA is an SEC
registered investment advisor. Since formal education and business background for
FCA’s principal executive officers and management persons does not appear elsewhere
in ADV parts 1 or 2, they are outlined below:
A. Formal Education and Business Background of Executive Officers
James C. Garrels - President
Mr. Garrels forty-eight years of investment experience includes working for a number of
both large and small bank trust departments, brokerage firms, and investment advisors. The
strengths and weaknesses of each were learned by having portfolio management and/or
marketing responsibilities at each organization. Thirty-nine years of Mr. Garrels experience
has been as an investment management consultant to clients both public and corporate, with
emphasis on the public sector. Previous employers include:
Smith Barney Harris Upham, Chicago, Illinois –
Account Executive -1971-73
State National Bank, Evanston, Illinois – (now J.P. Morgan Chase)
Investment Management Sales - 1974
First Union National Bank, Charlotte, N.C. - (now Wells Fargo)
Trust Officer - 1975-76
Bache & Co., Charlotte, N.C. – (now Wells Fargo)
Regional Director, Investment Management Consulting - 1977
The Investment Counsel Company, Orlando, Florida (formerly Boston Company
of the Southeast)
Principal - 1978
Oppenheimer Capital Corporation, New York, NY –
Portfolio Management & Marketing
Vice President 1979-80 (6)
Prudential Bache Securities, New York, NY – (now Wells Fargo)
Vice President and Co-Manager
Investment Consulting Services - (6) 1980-84
Part 2A of Form ADV Page 10 of 11
Fiduciary Capital Advisors, Westfield, New Jersey –
President - 1984-Present
Mr. Garrels received his Bachelor of Arts degree from Northwestern University
and attended its graduate school of management, (evening division) 1972-1974.
Mr. Garrels currently services 6 client relationships. Client load maximum is 12.
Mr. Garrels attended the IFEBP Advanced Investments Management Program
conducted by the Wharton School, University of Pennsylvania - September 2006.
John L. Bochicchio - Vice President, Portfolio Manager & Research Analyst
Mr. Bochicchio, twenty-eight years of investment experience, joined FCA in 1997. The
primary focus of Mr. Bochicchio's responsibilities is the monitoring of managers for
possible replacement, collection and processing of data for client reports as well as the
production of those reports in coordination with Mr. Garrels. Mr. Bochicchio also has
research responsibilities as back-up to Mr. Garrels on special projects. Mr. Bochicchio has
worked as a trading floor clerk on the New York Stock Exchange, employed by A.G.
Edwards & Sons and holds a Bachelor of Science in Business Administration (Finance),
from Seton Hall University, (1991).
Mr. Bochicchio is back-up to Mr. Garrels should Mr. Garrels be unable to attend client
meetings.
Part 2A of Form ADV Page 11 of 11
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