Fiduciary Trust International is a financial advisor firm that firm deals almost exclusively with high-net-worth individuals and families, and most of the aforementioned assets belong to less than 40 high-net-worth individual clients. In 2020 Fiduciary, a subsidiary of Franklin Templeton, bought Athena Capital Advisors, which is based in Lincoln, Mass.
Fiduciary Trust International is a fee-only firm, which means its revenue comes exclusively from the advisory fees clients pay. This distinguishes it from a fee-based firm, where advisors may supplement their advisory fees with commissions from insurance sales or securities transactions. By eschewing these commissions, a fee-only firm avoids many conflicts of interest.
Fiduciary Trust International Background
Fiduciary Trust was founded in 1993 by Dr. Lisette Cooper, who continues to serve as the chief investment officer (CIO) and managing partner of the firm. Cooper indirectly owns a majority of the firm through a holding company. She has spent almost 40 years working the financial services industry.
The team includes one chartered financial analyst (CFA), and one is a certified public accountant (CPA).
Fiduciary Trust International Client Types and Minimum Account Sizes
The majority of Fiduciary Trust's exclusive 50-member client base is made up of high-net-worth individuals and families. The firm also works with a collection of trusts, estates, charitable organizations, corporations, endowments, partnerships and limited liability companies (LLCs).
Despite its focus on high-net-worth clients, Fiduciary Trust doesn’t have an explicit minimum account size. However, it does require a $150,000 minimum annual fee for portfolio management services, which is likely cost-prohibitive for any would-be clients without a high net worth (though the company does say that this minimum fee is waivable under certain circumstances). It comes as no surprise, then, that the firm doesn’t currently work with any non-high-net-worth individual clients.
Services Offered by Fiduciary Trust International
Fiduciary Trust specializes primarily in portfolio management services for its high-net-worth clients. These services typically include the creation of a tailored investment plan, the implementation of a strategic asset allocation, the selection of third-party money managers and consistent performance monitoring and reporting.
When it comes to non-investment services, the firm offers:
- Estate and wealth planning support
- Tax and legal considerations
- Cash flow and liquidity analysis
- Growth goal planning
- Values-based and environmental, social and governance (ESG) investing
Additionally, Fiduciary Trust serves as the investment manager to several commingled funds and fund-of-funds, which are typically made available to qualified investors.
Fiduciary Trust International Investment Philosophy
Fiduciary Trust tailors its investment philosophy to each client, developing a customized investment approach based on the client’s:
- Appetite for risk
- Income requirements
- Investable assets
- Investment timeline
- Liquidity needs
- Legal and tax considerations
- Investing preferences
In general, Fiduciary Trust prefers to invest for the long term. This involves creating an investment portfolio that maxmizes returns with minimal risk and tax implications. When selecting securities, the firm uses both historical and forward-looking analyses to choose investments. The firm attempts to diversify client portfolios across a broad range of asset classes according to the needs of the client. These asset classes could include U.S. equities, foreign equities, real estate, private equity, hedge funds and other alternative investments, fixed-income securities, derivatives, futures and cash equivalents.
Fees Under Fiduciary Trust International
Fiduciary Trust generally charges a percentage-based fee for portfolio management and sub-advisory services, which can range from 0.25% to 1.00%. Where you fall within that range depends on a number of factors, most notably the size of your account. The firm imposes a minimum annual fee of $150,000 for its services, although it may waive this stipulation at its discretion.
What to Watch Out For
Fiduciary Trust doesn't have any disclosures, according to its Form ADV. In other words, it has a clean legal and regulatory record in the eyes of the U.S. Securities and Exchange Commission (SEC).
Opening an Account With Fiduciary Trust International
If you’re interested in starting a relationship with Fiduciary Trust, there are a couple of ways you can get in touch. You can call the firm at (877) 384-1111.
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