Our Evidence Based Approach

Understand Complexity – Keeping It Simple

The founders of Fiduciary Wealth Partners, Preston McSwain and James 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 actively management equity funds.”

“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

In addition, we don’t believe in marking large tactical asset allocation or economic calls.  Again, it isn’t that we don’t  follow the markets and events closely.  We constantly debate ideas.  The problem is that the evidence is quite strong that even the most haloed investment professionals  or economists are less accurate than a coin toss (click here for more or see below to find out why we don’t make forecasts).

Related to all of this, we know that many websites have impressive charts that can make emotional points related to views that differ from ours.  Versus taking this illustration path often followed, we encourage you to take time to read what we have researched and written about in detail, which has been reviewed and published by some leading investment organizations.

Below are links to pieces we hope you will find useful.  We think the evidence for our index-biased approach that actively resists the complex and keeps it simple is compelling, but after researching the issue yourself, let us know if you agree.

Can I Do Better?

How to Outperform Leading Endowments

Why We Don’t Make Forecasts

Private Equity Presentations:  Are Some Tall Tales?

Where Are Fees and Expenses Not Costs?

Trust and Fiduciary Services:  Questions to Ask

Are Alternative Investments Prudent for Taxable Investors?

How Can Investors and Trustees Be Prudently Passive?