The appropriate investment of your assets is a critical part of achieving your objectives. At Bell Tower Advisors, we practice a disciplined approach to diversification and to sensitively manage risk and market volatility on your behalf. All decisions are guided by the Investment Policy Statement (IPS), which is created and agreed upon by you and BTA prior to beginning any investment advisory services. Deciding on and documenting your target asset allocation is a critical piece of the IPS. We prefer to operate as a discretionary investment advisor, which means we have limited power of attorney over client accounts and assets, and we execute trades in accounts without requiring or seeking prior approval. We communicate with you regularly regarding our thoughts on the market, our portfolio structuring process and what it means for you.
Historical analysis shows that a broadly diversified portfolio reduces risk and can provide more consistent returns over time. There are several constants that we believe hold true for investors:
Markets are uncertain
It is extremely difficult, if not impossible, to predict when any one market sector (technology, consumer staples, utilities) or equity category (domestic, international, emerging) will outperform; therefore, we believe in maintaining broad exposure to multiple categories and asset classes. Many studies have shown the inability of most market timers (both individual and institutional) to successfully maneuver the markets over long time periods. Even if the timer is correct sometimes, a few mistakes could wipe out any advantage. This is why it is essential to have an investment strategy, and to be disciplined in adhering to the plan when markets experience extreme volatility.
Make the most of what you can control
Since so many elements of investing are out of the control of most investors (corporate management, economic policy, international issues, market behavior itself), it is important to carefully manage that which is within our control. For us, this means using investment vehicles that offer low cost, transparency, and strict adherence to investment style.
Investment strategy only works if it reflects your goals
Our investment planning and implementation comes only after a review of your investment goals and results of your investor profile questionnaire. We take into account tax considerations, income needs, and your ability to withstand volatility in your portfolio. During the process we seek to educate you regarding various investment issues. We believe that by establishing a rational investment plan upfront, you will gain confidence that you are on track to achieving your goals and you'll be free from worrying about short term returns.