guiding our clients to their financial objectives · 2017. 7. 6. · benjamin d. van handel,...

Guiding Our Clients To Their Financial Objectives

A Message From the Chairman:

Thank you for your interest in our investment management services. We

offer a unique combination of proprietary research, professional portfolio

management, and attention to client service at a very reasonable cost.

Our success is a result of a sound long-term investment philosophy and

the continuity of our team of veteran professionals who have an average

of 20 years of investment management experience. The number of clients

per portfolio manager is limited in order to maximize time available for

the in-depth investment research required to uncover attractively priced,

high quality, consistent growth companies. We appreciate the tremendous

responsibility that our clients bestow upon us and take the management of

our clients’ wealth, whether it is family or institutional, very seriously. We

look forward to working with you and earning your trust and confidence.

Sincerely,

Kenneth J. Brusda, CFA, CFPChairman and Managing DirectorNorth Star Asset Management, Inc.

www.northstarinvestments.com 1

OUR HISTORY:During the Past 35 Years, We Have Developed a Research Process and a Commitment to Service That is Helping Our Clients Achieve Their Financial Goals.

WeestablishedNorthStarAssetManagement,Inc.(NSAM)in1996toprovidesuperiorinvestmentperformanceby focusingon internal,proprietary researchand investing inhighquality,consistentgrowthcompanies.Wedevelopedavisionofthewaywewishedtoworkandhowwewouldhelpourclientsachievetheirfinancialgoals.Theresultisacohesive,agilefirmthatinvestsopportunisticallyandassertively.Oursuccessisaproductofourexperience,continuity,andcommitment.

PriortotheestablishmentofNorthStarAssetManagement,Inc.,thefivefoundingprincipalsofthefirmhadworkedasateamofTrustInvestmentOfficersatAssociatedBankinNeenah,Wisconsin.Withanaverageof20yearsofinvestmentanalysisandportfoliomanagementexperience,ourgrouphasproducedanenviablerecordofinvestmentperformanceandclientservice.

North Star Asset Management was founded to ensure the continuity of our team of professionals and toimproveuponanalreadysolidtrackrecordofresultsandservice.Thecreationofaninvestmentadvisoryfirmwitha limitednumberofclients foreachportfoliomanagerhasallowedforanenhancedlevelofproprietaryinvestmentresearch,expandedflexibilitytopursuenewinvestmentopportunities,andagreaterlevelofclientcommunications. We remain firmly committed to our philosophy of long-term investment in a diversifiedportfoliooffundamentallysound,consistentgrowthcompanies.

North Star Asset Management is incorporated inWisconsinandregisteredwiththeSecuritiesandExchangeCommission.NSAMadvisesclientsin34statesandseveralforeigncountries.

OUR INVESTMENT TEAM: The Secret to Our Success is the Continuity, Experience, and Commitment of Our Investment Team.

The key to our performance has beenthecontinuityofanexperienced teamofinvestmentprofessionalscommittedto fundamental researchonconsistentgrowth companies. Having workedtogether for most of our careers, ourinvestment team has been consistentinitsinvestmentapproachaswellasitsattentiontoclientservice.Ourinvestmentteamsharesacommongoal: uncovering and analyzing

consistentgrowthcompanies inwhichto invest. Inthisongoingpursuit,ouranalystsandportfoliomanagersperform independent fundamental research, exchange ideas with Wall Street analysts, and engage in activedialoguewiththemanagementofthecompanies inwhichweinvest.Newinvestmentideasarethefuelthatdrivesourperformance.

Our portfolio managers also focus on building long-term relationships by creating client understanding andconfidence in our investment decision-making process. The unique skills and experiences of our investmentteam allow our clients to focus on other aspects of their business, life, or organization, while we help themmaximizewealthbymanaging their investmentsandcoordinating the talentsofallofourclients’accountingandlegaladvisors.

Successfulinvestingdoesn’tfollowastraightlinefrompickstoprofits.Tosucceedconsistently,ourinvestmentsarebasedonastrictinvestmentprocessthathasbeenshapedbyover200yearsofcombinedexperience.

2 www.northstarinvestments.com

Kenneth J. Brusda, CFA, CFP, isChairman/ManagingDirectorandafoundingprincipalofNorthStarAssetManagement.PriortofoundingNSAM,Kenspentover22yearsintrustinvestments with Associated Bank. As a Vice President and Trust Investment Officer, hemanagedtheRegionalBankFundsandEquityIncomeFundssincetheirinceptionsintheearly1980’s.KenalsoservedaspastChairmanoftheAssociatedBankAsset/LiabilityCommittee.He is a Chartered Financial Analyst (CFA), a Certified Financial Planner (CFP), and amemberoftheCFAInstituteandtheFinancialPlanningAssociation.KengraduatedSummaCum Laude in 1974 from the University of Wisconsin-Whitewater with a BBA Degree inFinanceandearnedanMBAinFinanceattheUniversityofWisconsin-Oshkosh.

David W. Risgaard, CFA,isPresident/ManagingDirectorandfoundingprincipalofNorthStar Asset Management. Prior to founding NSAM, Dave was with Associated Bank since1990wherehehadbeenaTrustInvestmentOfficer.Inthiscapacity,Daveco-managedtheCapitalAppreciationFundsandmanagedtheTelecommunicationFunds.HeisaCharteredFinancialAnalyst(CFA)andamemberoftheCFAInstitute.DavegraduatedwithhonorsfromtheUniversityofWisconsin-Madisonin1990.HereceivedaBBADegreeinFinanceandManagementandwaselectedtoPhiBetaKappa.

Michael D. Flesch is a Managing Director and a founding principal of North Star AssetManagement.PriortofoundingNSAM,MikewaswithAssociatedBanksince1980wherehehadbeenaVicePresidentandTrustInvestmentOfficer.Inthiscapacity,Mikeco-managedthe Common Stock Funds. He also managed Associated Bank’s investment portfolio andserved on its Asset/Liability Committee from 1985 to 1996. He is a 1979 graduate of theUniversityofWisconsin-OshkoshwithaBBADegreeinFinance.

Eric F. Richter, CFA,isaManagingDirectorandafoundingprincipalofNorthStarAssetManagement. Prior to founding NSAM, Eric was with Associated Bank since 1988 wherehe had been an Assistant Vice President and Trust Investment Officer. During this time,he co-managed the Common Stock Funds. Eric is a Chartered Financial Analyst (CFA)and a member of the CFA Institute. Eric received his BBA Degree from the University ofWisconsin-Madison in 1986 with a double major in Finance and Management. In 1988,he received his MBA Degree in Finance, Investments and Banking from the University ofWisconsin-Madison.

OUR INVESTMENT TEAM:Our Passion is Helping Our Clients Reach Their Financial Goals.


Geoffry A. Penn, CFA,isaManagingDirectorandafoundingprincipalofNorthStarAssetManagement.GeoffhadbeenaTrust InvestmentOfficeratAssociatedBank from1990 to1996.WhileatAssociatedBank,GeoffmanagedtheBondFundsandco-managedtheCapitalAppreciation Funds. He is a Chartered Financial Analyst (CFA), a member of the CFAInstitute,andacandidateforCertifiedFinancialPlanner(CFP)certification.Geoffisa1990graduateoftheUniversityofWisconsin-MadisonwithaBBADegreeinFinance,InvestmentsandBanking.

Bradley C. Buchanan, CFA, Managing Director, joined NSAM in November 1997 afterspendingnearlyfouryearsintrustinvestmentswithAssociatedBankasaninvestmentanalystandportfoliomanager.InhispositionasTrustInvestmentOfficer,heco-managedAssociatedBank’s Regional Bank Funds and Intermediate-Term Bond Funds. Brad is a CharteredFinancialAnalyst(CFA)andamemberoftheCFAInstitute.Bradisa1993graduateoftheUniversityofWisconsin-GreenBaywithaBBADegreeinFinance.

Robert S. Huntley, CFA, CPA, Vice President and Portfolio Manager, joined NSAM inMarch2000.Overtheprior15years,heservedasaSeniorAuditoratWipfliUllrichBertelsonLLP,VicePresidentofFinanceatEnzymaticTherapy,Inc.andasaconsultantwithKobielak& Associates. He is a Certified Public Accountant (CPA), a Chartered Financial Analyst(CFA) and a member of the CFA Institute. Bob is a 1984 graduate of the University ofWisconsin-GreenBaywithaBBADegreeinAccounting.

Mark P. Reilly, VicePresidentandPortfolioManager,joinedNSAMinDecember2006afterspendingtheprevious11yearsintheinvestmentindustry,mostrecentlyasaVicePresidentand Portfolio Manager at M&I Investment Management Corporation. He is currently acandidateforCertifiedFinancialPlanner(CFP)certification.MarkgraduatedfromMichiganStateUniversityin1994withaBADegreeinEconomics.


Thomas A. Kurkowski, CFP, CPA,VicePresidentandPortfolioManager, joinedNSAMinAugust2007.Duringtheprevious25years,TomservedastheChiefFinanceOfficerandDirector of Finance for the Catholic Diocese of Green Bay, WI. Prior to 1982, Tom was aPartnerfortheaccountingfirm,Alam,Morris&CompanyinDetroit,MI.TomisaCertifiedPublic Accountant (CPA), a Certified Financial Planner (CFP), and a member of theAmericanInstituteofCertifiedPublicAccountants.HeearnedaBBADegreeinAccountingfrom the University of Dayton in 1970 and a Masters of Science Degree in Taxation fromWalshCollegein1980.

David L. Hackfort,CFA,VicePresidentandPortfolioManager,joinedNSAMinJune2007.DavegraduatedCumLaudeinJanuary2007fromtheUniversityofWisconsin-Oshkoshwitha BBA Degree in Finance. He is a Chartered Financial Analyst (CFA), a member of theCFAInstitute,andtheCFASocietyofMilwaukee.DaveiscurrentlyacandidateforCertifiedFinancialPlanner(CFP)certification.

Benjamin D. Van Handel, InvestmentAnalyst, joinedNSAMinJune2013.BengraduatedwithhonorsfromtheUniversityofWisconsin-MilwaukeeinMay2013withaBBADegreeinFinanceandalsoearnedtheUniversity’sSheldonB.LubarSchoolofBusinessCertificateinInvestmentManagement.HeiscurrentlyacandidatefortheCharteredFinancialAnalyst(CFA)designation.

Renee L. Kaufert, IACCP, Operations Manager and Securities Trader, has over 35 yearsofexperiencewithinthefinancialservicesindustry.PriortojoiningNSAMinJuly1996,sheservedasSeniorRegisteredSalesAssistant/OperationsManagerwithDainBosworth,Inc.,whereshehadbeenemployedsince1989.Reneeheldvarioussecurities-relatedpositionswithPiperJaffray&HopwoodandAssociatedBanksince1979.ShepassedtheNASDsecuritiesexaminations Series 7 and Series 63 in 1990 and earned her Investment Advisor CertifiedCompliance Professional (IACCP) designation in 2007. Renee supervises operations,compliance,andsecuritiestrading.



Susan C. Beaver, CFP,Senior InvestmentAdministrator, joinedNSAMin July1996.Herpreviousemploymentexperiencehadbeeninadministrationandsales.SusanreceivedaBFADegreefromTheRhodeIslandSchoolofDesignin1978.AsSeniorInvestmentAdministrator,she oversees portfolio reporting and manages client administration and communications.Susan isaCertifiedFinancialPlanner(CFP)andhasservedasPresidentof theFinancialPlanningAssociation—NortheastWisconsinChapter.

Karen M. Jochman, Investment Administrator, joined NSAM in March 1999. Karenhad previously been employed at Bank One where her 13 years of experience includedresponsibilities in operations and account administration. Karen’s primary responsibilitiesincludeportfolioreportingandsecuritiestradingaswellasclientadministration.Karenalsohandlescomputernetworkinstallation,supportandservice.

Megan J. Schroeder, InvestmentAdministrator, joinedNSAMin2004.Megan’s responsi-bilitiesincludeportfolioreportingaswellasclientadministrationandcommunications.Shealsoassistswithsecuritiestrainingandcompliance.

Lisa L. Conlon, Investment Administrator, joined NSAM in September 2013. Lisa hadpreviously been employed in the investment industry for over 11 years, primarily atStifel Nicolaus & Company. Lisa’s responsibilities include portfolio reporting and clientadministration.

OUR INVESTMENT PHILOSOPHY:How Your Portfolio Will be Managed.

North Star Asset Management tailors each portfolio to meet the specific needs and objectives of our clientsprimarily through a combination of high quality, consistent growth companies and investment grade fixedincomesecurities.Thougheachportfolioisunique,themajorityoftheinvestmentsareconsistentwithamodelportfoliodevelopedbyourteamofinvestmentprofessionals.Wecustomizetheriskofeachportfolioprimarilybyadjustingthelevelofstocksandbondsratherthanchangingthemixofindividualsecurities,althougheachportfoliomanagerhastheflexibilitytoinvestinsecuritiesthatareappropriateforeachclient’srisktolerance.By limiting the ratio of clients per portfolio manager, we ensure that our portfolio managers have the timenecessaryforproperlyassessingclientobjectivesanddevelopingandimplementingaportfoliostrategytomeetthoseneeds.

We utilize a team approach with eleven investment professionals working together to provide personalizedportfoliomanagement servicesby researchingand investing inconsistentgrowthcompaniesandappropriatefixedincomesecurities.Eachportfolioisguidedbyaveteranmanagerwiththeresourcesandexperienceoftheentireteaminsupport.Allportfoliosarereviewedregularlybytheentireinvestmentteam.

Our team of investment professionals evaluates investment opportunities through proprietary, fundamentalanalysis,involvingcompanyvisits,inputfromWallStreet,andtheutilizationofadividenddiscountvaluationmodel.Ourequityportfoliosareinvestedinaselectnumberofstocksrepresenting15–20industries.Holdingsofindividualsecuritiesaregenerallylimitedtonomorethan7%ofanequityportfolio.Thisprovidessufficientdiversification while permitting us to leverage our internal research. By diversifying between large, medium,andsmallstocksalongwithgrowth,valueandinternationalstocks,NSAMprovidesbroaddiversificationforitsclients.Thisflexibilityallowsustoinvestinthemostattractivecompaniesregardlessoftheirsizeorgeographiclocation.


North Star Asset Management believes in long-term investing. We have relatively low portfolio turnover,therebyavoidingexcessivetradingcosts.Ourequityportfolioturnoverisapproximately20%annually,resultinginanaverageholdingperiodofapproximately5years.Thisturnoverissignificantlybelowindustryaverages.Inadditiontominimizingtradingexpenses,thelowturnoverreducespotentialtaxliabilities.While the firmutilizesa lowportfolio turnoverapproach, it also recognizes theneed tobe flexibleand takeaction when the fundamentals warrant the sale of an investment. Other key elements of our sell disciplineinclude disposing of investments when they materially exceed fair value, when holdings can be modified toenhancereturns,orwhenprudencedictatesportfoliodiversification.

Although our dividend discount valuation model and fundamental research provide valuable input and ourinvestment philosophy adds discipline, there are no substitutes for knowledge and experience when makinginvestmentdecisions.Tothatend,ourinvestmentprofessionalscontinuouslyreviewcurrentholdings,securityrecommendations,andportfoliostrategyforeachaccount.


OUR EQUITY INVESTMENT APPROACH:Investing for the Long-Term in a Diversified Portfolio of Fundamentally Sound Consistent Growth Companies at a Reasonable Price.

Wefocusonidentifyingconsistentgrowthcompaniesofferingabove-averagereturnpotentialregardlessoftheirsizeorgeographiclocation.Thosecompaniestypicallypossessthefollowingcharacteristics:

Sustainable competitive advantage. A sustainable competitive advantage is what differentiates acompanyfromitscompetitors.Thisincludessuchthingsasprovidingasuperiorproductorservice,havingtheleading market share, being the low-cost producer, possessing a superior distribution system, utilizing bettertechnology, having superior research and development technology, or offering the best customer service.Trademarks,tradenames,andpatentsalsoprovidecompellingcompetitiveadvantages.

Superior management that acts in the shareholders’ interest. Managementshouldhaveadefinedbusinessobjectiveandstrategy.Itmustusethecompany’sassetswiselyandinvesttogeneratesuperiorlevelsofprofitandgrowth.Theymustbeinnovativeandabletoanticipateandactonchange.Inaddition,managementmustapplyhighstandardsofcorporategovernanceandtrulythinkofshareholdersasownersofthebusiness.Ahighlevelofmanagementownershipinthecompanybetteralignsmanagementwithshareholdersandisviewedpositively.

Long-term track record of revenue and EPS growth. ThecompanyshouldhavereportedconsistentrevenueandEPSgrowthoverthepast5-10yearsormore.Tocontinuesucharecord,demandforitsproductsorservicesmustbegrowing,ascostcontainmentandmarginimprovementwillnotlastforever.TheconsistencyofreportedEPSalsodemonstratesrecurringandpredictabledemandforthecompany’sproductsorservices.Acompanythatexhibitsthisconsistencywillmostlikelyhavebelowaveragevulnerabilitytoadownturnintheeconomy.


Leader in a growing industry. The company’s end-markets should be growing faster than the overalleconomy.Thecompanyshouldbealeaderandinnovator,notnecessarilythelargest.Therateofinternalgrowth(asopposedtogrowthfromacquisitions) is importantbecauseitwillprovideasustainableannualreturnandincreasethevalueofthecompanyoverthelong-term.

Strong balance sheet. Acompanywithastrongbalancesheet (lownetdebt-to-capital) shouldhavethecapacity to finance its growth. A company’s operating income should provide a very secure level of interestcoverageundervariedeconomicconditions.Asolidbalancesheetwillhelpreducevolatilityinreportedearningsduringaneconomicrecession,aswellasreducetheriskofchargesfromwrite-downs.

Generation of free cash flow. Thebestbusinessestendtoberelativelylesscapitalintensiveandgeneratesignificantfreecashflow.Freecashflowcanbenefitshareholdersinmanyways,suchassharerepurchases,debtreduction,orstrategicacquisitions.

Attractive Valuation. Afterfindingacompanythatmeetsmost,ifnotall,oftheabovecriteria,itiscriticaltoinvestmentsuccesstohavethedisciplinetowaitfortheappropriatepurchaseprice.Keyvaluationdeterminantsincludeacompany’sprobablelong-termearningspersharegrowthrate,consistencyandstabilityofestimatedgrowth, profitability, financial condition, projected cash flow, and quality of management. Our valuationmethodologyincorporatestheuseofadividenddiscountmodelaswellasrelativeprice-to-earningsratio(PE)andprice-to-earningsrelativetoexpectedgrowthratio(PEG)analysis.


OUR FIXED INCOME APPROACH:A Focus on High Quality Securities and Duration Management.

Ourbondinvestmentapproachemphasizesthegenerationoflong-term,consistentreturnswithintheparametersofindividualclientobjectives.Ourstaffhasexperienceinavarietyoffixedincomedisciplines,fromemphasizingincomeandprincipalstabilityforconservativeclients,toapplyingactivedurationmanagementtechniquesfordedicatedinstitutionalportfolios.Ourstrengthliesinourabilitytocustomizeafixedincomeportfoliotomeetthe specific needs of each client. However, several aspects of our philosophy will apply to all fixed incomeportfoliosunderourmanagement:

• Focus on investment grade securities.

• Avoid excessive interest rate risk.

• Maintain adequate liquidity to ensure maximum flexibility.Permissible investments include U.S. Treasury securities, government agency issues, corporate securities,preferredstocks,municipalbonds,mortgageandasset-backedissues,certificatesofdeposit,fixedincomemutualfunds,exchangetradedfunds(ETFs)andhighqualitymoneymarketfunds.


WHY SELECT NORTH STAR ASSET MANAGEMENT?

Background• Independentregisteredinvestmentadvisoryfirmfoundedin1996.• Assetsundermanagementexceed$1billion.

Staff• Teamof11professionalswithanaverageof20yearsofinvestmentmanagementexperience.• SevenCharteredFinancialAnalysts(CFA).• TwoCertifiedPublicAccountants(CPA).• ThreeCertifiedFinancialPlanners(CFP).

Investment Approach• Consistentgrowthcompaniesatareasonableprice.• Highqualityfirmswithstrongbalancesheets.• Large,mid-sized,andsmallercapitalizationstocks.• Well-diversifiedportfolioswithlowturnover.

Research• Proprietaryfundamentalresearchinvolvingcompanyvisits.• WallStreetresearchanddividenddiscountvaluationmodel.

Service• Limitednumberofclientsperportfoliomanager.• Flexibleportfoliomanagementresponsivetoclients’needsandobjectives.• Reasonablefees.

Clients• Highnetworthindividualsandfamilies.• CorporateretirementplansandIRARollovers.• Endowments,foundations,andcorporateaccounts.


Guiding O

ur Clients

To Their Financial O

bjectives

We appreciate the tremendous responsibility our clients bestow upon us and take the management of our clients’ wealth, whether it is family or institutional,

very seriously.

We look forward to working with you and earning your trust and confidence.

59 Racine Street, Suite A Menasha, WI 54952 (920) 729-7900www.northstarinvestments.com Toll Free (888) 307-7900

guiding our clients to their financial objectives · 2017. 7. 6. · benjamin d. van handel,...

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