Michael Cabanas, Regional Managing Director, Fiduciary Trust Company International

In an interview with Invest:, Michael Cabanas, regional managing director of Fiduciary Trust Company International, discussed the firm’s shift toward wealth creation, the growing role of technology and AI, and adapting to the evolving regulatory environment.

Reflecting on the past year, what have been the most significant milestones or achievements for Fiduciary Trust International?

In a year of transformation, we’ve achieved record highs in assets under management while continuing the successful multi-year integration of two acquisitions — Athena Capital Advisors in the Boston area and Pennsylvania Trust near Philadelphia. Bringing these firms together was more about synergy than growth. Today, we operate as a single, cohesive firm, combining deep expertise with local decision-making.

We also expanded our presence in South Florida with the opening of an office in West Palm Beach, providing high net worth clients with local access to the organization’s customized investment and wealth management offering. 

As active and growth-oriented managers, we’ve leaned into technology, an investment that has paid off. Our clients aren’t just seeing strong portfolio performance, they’re experiencing the benefits of a team that is more aligned than ever.

Being a fully owned subsidiary of Franklin Templeton — a global financial industry leader — is a huge advantage in terms of our access to global resources. Fiduciary Trust International thrives on autonomy. Each office, from Miami (Coral Gables) to Boston and Los Angeles, makes decisions based on the unique characteristics of its market. In Miami, for example, we’ve seen an influx of private equity firms, hedge fund managers, and entrepreneurs from the Northeast, creating a more dynamic business environment. Our flexibility to respond to these regional shifts is one of our major advantages.

How has Fiduciary Trust International adapted its wealth management strategies in response to the current economic environment?

Our personalized portfolio management capabilities have been key. We initially took a conservative stance on fixed income, shortening bond durations in response to rising interest rates. But when the Fed hinted that rates were forecasted to decline, we pivoted and slightly began to extend durations and position our clients to benefit from this shift. Now, with the new administration in place and inflation still on everyone’s mind, we are keeping a close eye on interest rates.

More broadly, we’ve evolved from focusing solely on wealth management to actively driving wealth creation. Traditionally, alternative investment opportunities were reserved for the ultra-wealthy, but today, the playing field has expanded. More clients now have access to sophisticated capital creation strategies, allowing them to grow wealth in ways that weren’t possible just a few years ago.

What trends are you observing in the industry?

Before the presidential election, estate taxes were the hot topic. The current federal estate tax exemption is nearly $14 million, which is set to expire at the end of 2025. Now, with Trump back in power, the estate tax exemption is expected to continue its current path with annual increases to account for inflation.

The best advice? Act now. Estate attorneys and trust advisors are encouraging clients to take advantage of today’s lifetime exemption by transferring assets to the next generation sooner rather than later. There is very little downside to acting. If the exemption remains where it is, nothing is lost. If it drops, early action locks in the higher threshold, and if it increases, additional gifts can always be made down the road.

How are your clients’ demands shifting with regard to sustainable investing, and how is Fiduciary Trust International meeting these expectations?

Sustainability is no longer a niche interest; it’s at the forefront for many investors. When we acquired Athena Capital Advisors in 2020, we incorporated a team that is nationally recognized as a leader in sustainable and impact investing.

Today, we can offer clients customized reports on how their investments align with their values and organizational missions. Whether it’s climate change concerns or corporate governance standards, we empower clients to invest in ways that prioritize their values.

This isn’t about politics; it’s about smart investing. Companies with strong sustainability ratings aren’t just ethical; they’re often well-run businesses positioned for long-term success.

Philanthropic giving is a key service offered by Fiduciary Trust International. What factors are driving changes in philanthropic planning?

Philanthropy is becoming more intentional. Gone are the days of simply writing a check at a charity gala. Today, clients want to create a lasting impact, whether that means supporting education, women’s rights, or immigrant communities.

To help, we have a dedicated team member who specializes in structuring philanthropic efforts. She works closely with families to establish foundations, endowments, and multi-generational giving strategies. Philanthropy is no longer just an afterthought; it’s a central part of how families define their legacy.

How are you helping institutions navigate the challenges of the current economic landscape, and what unique solutions are you providing?

In times of uncertainty, communication is everything. Market fluctuations, regulatory shifts, and elections all create uncertainty, so we focus on keeping clients informed and prepared for the challenges ahead. We offer institutions a strategic partnership focused on supporting the organization’s mission, enriching the organization’s future and protecting the organization’s ability to make a long-term impact. 

Technology has enhanced our ability to analyze markets, but at the end of the day, relationships matter most. We can’t control volatility, but we can control how we engage with and support our clients.

What technological innovations are you utilizing to enhance your clients’ experience and improve service delivery?

As our CEO John Dowd often says, every company is now a technology company. Whether in wealth management, manufacturing, or agriculture, technology is the key to scaling and personalizing services.

For the past five years, we’ve been investing heavily in digital strategy. We’ve held offsite meetings focused on integrating AI into our processes, knowing that it’s beginning to play a significant role in every industry. The goal isn’t to replace human expertise, but to enhance it.

How is the regulatory environment evolving, and what challenges or opportunities does this create for your firm?

Regulation has tightened significantly in recent years, reinforcing the importance of truly knowing your client. It’s no longer enough to understand financial goals, we need to anticipate needs, adjust risk exposure proactively, and ensure every strategy aligns with a client’s current objectives.

Cybersecurity is another major focus. As regulations evolve, protecting client data is paramount. That means using secure communication channels, implementing stronger authentication processes, and staying ahead of emerging threats.

The reality is that compliance isn’t just about following rules, it’s about fostering trust. Transparency and proactive communication ensure that clients feel confident navigating the increasingly complex financial landscape.

What do you see as the top priorities for Fiduciary Trust International over the next few years?

As our name suggests, trust is everything. Over the next 20 years, we’re set to witness the largest wealth transfer in history. Our role is to ensure that transition happens strategically, that it’s technically sound, and that our clients have the right plan in place.

One striking fact: nearly 70% of this wealth will be transferred to women. We’re fortunate to have a strong team of women executives who provide unique insights and support to our clients. We’re truly walking the walk in this sense. 

Beyond wealth transfer, our focus is on leadership through uncertainty. Political and economic shifts are inevitable, but a divided government—where a party controls one or more branches and the other controls the rest—has historically coincided with more favorable stock market performance. As of January 20, 2025, the Republicans have control of all three branches, so volatility can be expected as they attempt to define the new normal. While we can’t predict the future, we can help clients prepare for it.

At the core of everything we do is a simple principle: listen first. Markets rise and fall, and policies change, but what remains constant is the human element. By leading with empathy, wisdom, and foresight, we help our clients navigate change and not just react to it.