Understand Complexity – Keeping It Simple
The founders of Fiduciary Wealth Partners, Preston D. McSwain and James K. Cornell, together have over 50 years of experience working with wealthy families in senior management and advisory positions with leading financial services, investment management and trust companies.
Our experience analyzing academic research, evaluating investment manager presentations from many investment firms and consultants, and, importantly, crunching the numbers ourselves, all keep pointing us to the same conclusion:
Index funds should be the at the center of all investment portfolios
We believe talented managers exist, but as an independent fiduciary that has no ties to any investment firm or managers, we look just at the evidence.
“I successfully sold active management for the better part of 25 years and even won the Chairman’s Award at Lehman Brothers and Neuberger Berman for selling more active management equity funds than anyone in the history of the combined organizations.”
“I did not think I was biased, but incentives can be a powerful force in behavior. Once I started my own firm and looked at nothing but the evidence my views changed. The evidence is clear: Index funds outperform the vast majority of active managers over most any time period or market cycle.”
Preston D. McSwain, Founder, Fiduciary Wealth Partners
We always welcome the opportunity to debate our views with those who disagree with us and are happy to share our research. Versus posting charts and analysis that some might view as biased, however, we encourage you to look at independent research and articles written by industry leaders, academics and top publications.
Below are links to pieces we hope you will find useful. We think the evidence for our index-biased approach is compelling, but after researching the issue yourself, let us know if you agree.
Sensible Investing Documentary – The Evidence For An Index Oriented Approach
(a well done documentary on the fund industry)
CFA Institute Publication – The Rise and Fall of Performance Investing
(this link requires registration with the CFA Institute but is free)