Investment Strategies and Models

The dynamics and intricacies of today’s global financial markets have made investing an increasingly complex challenge.

North Star simplifies the investment decision-making process for you by offering a number of investment strategies, including:

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Separately Managed Account Solutions

The primary objective of the North Star Equity Strategy is long term capital appreciation. The Strategy utilizes exchange traded funds, mutual funds and individual securities.

Investment Managers’ Perspective: Depending on the market, this strategy may provide exposure to stocks of various capitalizations (small, medium or large), types of stocks (growth or value) as well as specific market sectors. In addition, when appropriate, this Strategy may allocate to international stocks and currencies.

The primary objective of the North Star Fixed Income Strategy is to generate income. The Strategy utilizes taxable and tax free bonds as well as preferred stocks.

Investment Managers’ Perspective: This Strategy places a significant emphasis on the credit quality of the issuer as well as interest rate trends. Issuers include the U.S. Government, Federal Agencies, state and local municipalities, foreign entities and public corporations.

The North Star Balanced Strategy combines the North Star Equity and Fixed Income Strategies. This Strategy places a significant emphasis on asset allocation – the appropriate mix of stocks, bonds, mutual funds and cash – and is designed to add equity exposure in rising markets and decrease equity exposure in declining markets.

Investment Managers’ Perspective: This Strategy provides a diversified portfolio of stocks, bonds and mutual funds that is based on each investor’s individual needs while structuring a portfolio that reflects current market conditions.

The investment objective of the North Star Micro Cap Strategy is capital appreciation. The Strategy seeks to achieve its objective of capital appreciation by investing in micro-cap companies, defined as companies with market capitalizations under $500 million.

Investment Managers’ Perspective: We look for situations that are undiscovered by most investors due to their lack of size, liquidity, research coverage or intrigue. Our focus is on companies that generate a high level of free cash flow and have strong or improving balance sheets.

The primary investment objective of the North Star Dividend Strategy is to generate dividend income and the secondary objective is to seek capital appreciation. The Strategy seeks to achieve its objective by investing in a diversified portfolio of dividend paying securities with market capitalizations under $1 billion.

Investment Managers’ Perspective: A surprising number of small capitalization stocks pay dividends. We look for situations that are undiscovered by most investors due to their lack of size, liquidity, research coverage or intrigue. Our focus is on companies that have a dividend yield of 3% and have shown a strong commitment to maintaining and growing their dividend payments.

Clients often have unique investment needs that can only be addressed by a customized portfolio rather than an existing North Star strategy. A portfolio can be created to address issues such as tax considerations; non-liquid and alternative investments; concentrated positions; income or cash flow needs; and environmental, social, and governance (ESG) concerns or other restrictions.

North Star Models

This asset mix may be appropriate for investors who want to minimize the effect of market fluctuations by taking an income-oriented approach with some potential for capital appreciation. The North Star Conservative Model contains a mix of Equity and Fixed Income using mutual funds and ETF’s. The goal of the North Star Conservative Model is to maintain a blend of 30% equity and 70% fixed income.

Primary Objective is capital appreciation and preservation of capital. The North Star Moderate Model contains a mix of Equity and Fixed Income using mutual funds and ETF’s. The goal of the North Star Moderate Model is to maintain a blend of 50% equity and 50% fixed income.

Primary Objective is long term capital appreciation. The North Star Aggressive Model contains a mix of Equity and Fixed Income using investment vehicles of mutual funds and ETF’s. The goal of the North Star Aggressive Model is to maintain a blend of 70% equity and 30% fixed income.

For more information about our SMA Strategies or Models, contact North Star Investment Management Corp. at (312) 580-0900 or info@nsinvest.com.

North Star may only transact business in a jurisdiction if first registered, excluded, or exempted from state investment adviser registration requirements and follow-up, individualized responses to persons in a specific jurisdiction by the Firm will not be made absent compliance with state investment adviser registration requirements, or an applicable exemption or exclusion therefrom.

The information provided in this commentary is not an offer to sell or the solicitation of an offer to purchase any security, product, or brokerage service.