Our Investment Philosophy
There is a Better Way to Invest
The conventional method of investing has served Wall Street very well, but has not served the investor well.Rather than searching for the new idea or the hot fund manager the way most firms do, we focus on sound fundamentals from academic research and the science of investing. We understand how markets work and use that knowledge to build broadly and deeply diversified portfolios that weather the ups and downs of an investing lifetime.
Structured Investment Philosophy
Carlson Wealth offers a structured investment approach that integrates academic research and the experience of leading institutional managers.
Unique Implementation of Modern Portfolio Theory
We believe in Modern Portfolio Theory and have access to high-quality institutional investment firms with a unique implementation of this theory into an entire diversified family of mutual funds. Each fund captures the return behavior of an entire asset class, letting us accurately diversify clients’ investments across multiple assets classes-precisely incorporating the level of risk with which each investor is comfortable. Asset class investing is a systematic, global allocation of your portfolio.
Preferred Funds
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Our range of investment programs is enhanced by our relationship with Dimensional Fund Advisors Inc., a premier institutional investment management firm with more than $150 billion assets under management. Individual investors must use a financial advisor to have access to these unique institutional funds. Dimensional is our primary but not exclusive source for building our balanced portfolio models and implementing a passively managed investment strategy. Founded in 1981 and serving primarily institutional investors, Dimensional is guided by an abiding belief in financial science and the efficiency of capital markets. They see markets as an ally, not an adversary.
Carlson Wealth subscribes to a unique investment philosophy established by Dimensional Fund Advisors. It does not involve actively picking stocks or passively tracking commercial indexes, but structures broadly diversified portfolios along the dimensions of risk and return identified by academic research. The strategy seeks to capture the returns of broad asset classes rather than individual securities, like traditional passive managers. However, unlike index fund managers who mimic commercial benchmarks, Dimensional defines their own asset classes. Index fund managers are forced to pay excessive trading costs whenever their arbitrary benchmark changes its composition. The investor pays these tracking costs in reduced performance. Because this strategy focuses on broad factors rather than a specific list of securities, their funds can reduce these costs by being patient and waiting for trading opportunities that add value.
Dimensional forms relationships with independent fee-only financial advisors like Carlson Wealth, who share their views about how capital markets work and how best to provide clients with a successful investment experience. Carlson Wealth, as your investment advisor, does not receive compensation from Dimensional for using its funds. You, as an investor, are also not under any obligation to invest in Dimensional funds if they do not best meet your particular investment needs.