Our Core Principles

Proper asset class allocation drives portfolio returns while limiting risk.

A study by Brinson, Hood, and Beebower (BHB) concluded that the asset allocation decision explains more than 91% of the variability of returns of an overall portfolio; individual stock selection and market timing were less than 7% combined.

Active management provides little-to-no value in highly efficient markets.

Conventional wisdom on investing surrounds the idea of being able to capture returns above the overall market, while enjoying risk that is lower than the market’s. The primary ways this is thought to be accomplished are through superior stock picking and market timing. In other words, it is believed to be possible to receive superior risk-adjusted returns consistently. However, evidence does not support this widely-held belief, especially with respect to equities.

Active management can potentially provide value in less efficient markets.

With regards to fixed income, it is widely believed among passive minded investors that the underperformance that prevails within active equity managers holds within the fixed income space as well. Evidence does not support this widely-held belief.

In other words, the underperformance versus benchmarks is less persistent in certain fixed income markets. Given Carswell’s unique background in fixed income, Carswell will utilize active fixed income managers within specific asset classes. In more efficient asset classes, mainly equities, market tracking funds will be used. This allows Carswell to not only optimally manage portfolios, but to limit expenses.

Investments based on evidence, not emotion.

Evidence-based investing is a highly disciplined approach to investment management that we execute on behalf of our Wealth Management and Institutional Advisory clients. We seek to filter through noise, information, hype and emotion in order to make reasoned investment decisions void of as much investor behavior penalty as possible.

See how we can put our philosophy to work for you.

Your best interestis our highest priority.

Other firms incentivize advisors to push high commission funds that serve their best interest, instead of yours. At Carswell, our fee-only structure puts your interests first and leaves the potential for conflict of interest at the door.