Todd Stoller, Regional Managing Director & Senior Portfolio Manager, Fiduciary Trust International

In an interview with Invest: Palm Beach, Todd Stoller, regional managing director and senior portfolio manager of Fiduciary Trust International, discussed recent trends in the wealth management landscape and showcased future growth in South Florida. “The amount of construction and relocations make this area the center of increased focus for us,” said Stoller.

What is your overview of the wealth management landscape in Palm Beach and South Florida?
We’re seeing exponential growth and tremendous opportunity. Many business owners are coming to us for guidance both before and after liquidity events. What’s particularly notable is the increasing number of women—entrepreneurs, widows, and retirees—seeking advice. It’s a more diverse client base than ever before.

Which services are FTI’s main drivers of growth?
The two areas driving the biggest growth are family office services and estate and trust services. While many of our competitors can offer investment management, few can match our capabilities in more nuanced areas like trust structuring, estate planning, and tax mitigation. Our ability to provide these offerings really distinguishes us.

What else differentiates FTI from other wealth management service providers in the region?
Clients in South Florida are highly attuned to the risks of fraud, and they seek partners they can trust. With a 90-year history and the backing of Franklin Templeton, we offer the stability of a global institution combined with the service model of a boutique. The various wealth management services we provide in-house, from trust administration to investment management, are also very appealing for clients looking for that one-stop shop convenience.

How has FTI adapted to address shifts in client expectations?
Clients expect more—and faster—than ever before. We offer clients the capability to access intraday reporting as well as options to create, schedule and customize reports. We manage personalized portfolios that can include alternative investments, as well as individualized stock and bond portfolios that we select and manage in-house. Our open architecture also allows us, together with the clients, to assemble and manage a portfolio customized for their specific needs, instead of just using a model portfolio. Very few firms provide this level of flexibility, and that separates us from the competition.

How does FTI leverage technology and innovation to improve client experience?
We are starting to use AI to streamline operations, such as transcribing internal meeting notes. But we’re also taking a cautious, client-first approach—particularly around privacy and data security. Clients value the fact that we maintain confidentiality. That’s a big thing, especially for our family office clients. In the future, we might use AI to review trust documents, or assist on asset allocation and investment decisions, but we will not use it until we are comfortable with the level of confidentiality management.

How does FTI handle the challenges in the wealth management and financial services industry?
When there is strong market performance for a long period of time, clients start to have the thought that they can handle wealth management on their own, or simply utilize low-cost ETFs. But when volatility returns or personal complexity arises, they realize that they may need professional advice. A lot of what we do is about being there for the client in difficult times, beside the actual investment management — our varied services tend to make client relationships more enduring. Clients realize there is additional value they receive outside of investment management. For example, tax mitigation from both income tax and estate tax can outweigh the investment returns, especially when we’re talking about a 40% estate tax. That’s on top of strong investment advice, which remains a point of pride for us.

What makes Palm Beach County an ideal location for FTI’s operation?
South Florida, in general, is almost like Wall Street South at this point. So many firms and people are relocating here from all over the country, as well as all over the world, including from South America. The neighboring companies in our office building are large, prestigious firms from the financial services, legal and insurance industries. The growth is phenomenal. With more companies and employees coming here, educational institutions are either relocating or expanding here. It makes for an excellent recipe for growth and competitiveness alongside the traditional global financial hubs. We’re only at the tip of the iceberg, and we believe it will grow exponentially in Palm Beach.

How do you promote financial literacy among your workforce and clients?
We are very proud of our “Walking the Walk with Women & Wealth” program, comprising webinars and events tailored specifically to female investors—who we’ve found from our research and experience approach investing differently. Women make up over half of our firm’s professionals, and they play a central role in guiding our work with the female clients.

How has the definition of financial independence changed for your clients?
Because of the recent investment returns, there are many more clients that have become financially independent. Many then think about potentially retiring earlier, changing their lifestyle, or buying a second home. It has been a game changer. As investment advisors, we have to remind clients there is a reversion to the mean — it’s not typical to see double digit returns for so many years straight. There are some years where we have negative returns. Clients may feel very confident after they have accumulated tremendous wealth over the past decade, but we have to remind them to diversify, and be ready for the lean years.

What legal changes could potentially affect the work you do with your clients?
As a firm, we are always looking at changes in tax laws. We are constantly reviewing the ongoing legislation in Congress, building scenario analysis and sharing the results with our clients. It includes potential implications to their portfolio and estate plan. Our Financial Planning team is deeply involved in helping clients make informed decisions based on what’s unfolding in real time.

What are FTI’s top priorities for the next few years?
Palm Beach is a key growth market for us. It’s poised for exponential growth, and we have the professionals that should enable us to capitalize on that growth. Part of the strategic plan is catering to the Palm Beach area with offices in two key places: downtown West Palm Beach and Boca Raton. The amount of construction and relocations make this area a center of increased focus for us. Additionally, with our firm originating from New York, many people and advisors from the Northeast are familiar with us. Having that brand recognition puts us at a tremendous advantage, in our opinion, helping to propel us to the next level.