·      Achieve client objectives through long-term investment in high quality, consistent growth companies and investment grade fixed income securities.

·        Research and evaluate investment opportunities through proprietary, fundamental analysis including company visits, through input from Wall Street and through the utilization  of a dividend discount valuation model.

·        Control equity risk through investment in a diversified portfolio of large, medium and small capitalization stocks.

·        Seek superior results through long-term investing with relatively low portfolio turnover, avoid market timing.

·         Maintain focus on research and service by limiting the number of client relationships handled by each portfolio manager.

·         Provide personalized investment services at a reasonable cost to clients.

North Star Asset Management’s professionals are dedicated to the firm’s philosophy of identifying and investing in above-average, consistent growth companies at a reasonable price.   NSAM commits significant effort and resources to fundamental research which is the foundation of the firm’s investment philosophy and a key  factor in  providing superior investment results.

·         High quality and experienced management with a proven track record.

·         Unique franchise, products, or services.

·         Leader within a growth industry.

·         Outlook for consistent and above-average earnings growth.

·         Strong balance sheet and free cash flow.

·         Attractive valuation.

NSAM invests portfolios in a select number of issues representing 15 to 20 industries.  Holdings of individual securities are generally limited to no more than 7% of the equity portfolio.  This provides sufficient diversification while permitting NSAM to leverage internal research.

North Star Asset Management believes in long-term investing and low portfolio turnover, thereby avoiding excessive trading costs and potentially adverse tax consequences.   Portfolio turnover averages about 20% annually, resulting in an average holding period of about 5 years.

While the firm utilizes a low portfolio turnover approach, it also recognizes the need to be flexible and take action when the fundamentals warrant the sale of an investment.   Other key elements of NSAM’s sell discipline include disposing of stocks when they materially exceed fair value, when holdings can be modified to enhance returns, or when prudence dictates portfolio diversification.

While valuation models provide valuable input and policies add discipline, there are no substitutes for knowledge and experience when making investment decisions.   To that end, current holdings, security recommendations, and portfolio strategy for each account are continuously reviewed by NSAM’s investment professionals.

North Star Asset Management’s bond investment approach  emphasizes the generation of long-term, above-average returns within the parameters of individual client objectives.   Our staff has experience in a variety of fixed income disciplines, from emphasizing income and principal stability for conservative clients, to applying active duration management techniques for dedicated institutional portfolios.   Our strength lies in our ability to customize a fixed income portfolio to meet the specific needs of each client.  However, several aspects of our philosophy will apply to all fixed income portfolios under our management:

·        Purchase only high quality securities, avoiding high risk derivatives and junk bonds.

·         Avoid excessive interest rate risk.

·         Maintain adequate liquidity to ensure maximum flexibility.

Permissible investments include U.S. Treasury securities, government agency issues, investment-grade corporate securities, mortgage and asset-backed issues, certificates of  deposit, trust preferred stock, and money market investments.