Description of Firm
NorthStar Asset Management, Inc. ("NorthStar" or "the Adviser") is an SEC-registered investment
adviser specializing in socially responsible investing. We are organized as a corporation in the state of
Massachusetts. The firm was founded in1990 and is owned by Julie N.W. Goodridge. At NorthStar,
we have created a unique approach to investing for social change. NorthStar centers our research,
thinking, and activism around five core areas that inform how we view the world: racial justice and
gender equity, economic inequality, human rights, environmental justice, and corporate governance.
We examine potential opportunities in multiple asset classes to be included in our portfolios, with the
goal of allowing our clients to invest assets to achieve their financial objectives with a deep awareness
of their social impact.
Additionally, NorthStar is a signatory to the UN Principles of Responsible Investment (UNPRI),
member of the Shareholder Rights Group, US SIF: The Forum for Sustainable and Responsible
Investment, and Confluence Philanthropy. As a signatory, NorthStar has undertaken to incorporate the
consideration of the various principles, investment analysis and commitments as stated by each
organization, where applicable.
Our Investment Approach
Investment Management Clients are those for whom we use traditional investments in public stocks,
bonds, and money market funds combined with alternative or “Outside” investments. In the course, of
our work with clients, we provide a broad range of financial advice including discussions about
budgeting, charitable contributions, generational gifting, alternative lending, estate concerns, tax
concerns, and other financial planning concerns brought to our attention by our clients.
Clients at NorthStar have individually tailored asset allocations integrating equity, fixed income, cash,
and Outside Investments. We use our discretionary authority to create portfolios for our clients using
publicly traded, global equity to grow the portfolio, and fixed income holdings (including cash) to
provide income and liquidity. In certain limited cases, we also provide non-discretionary advisory
services with respect to similar investments. Outside Investments in alternative asset classes outside
of public equity, fixed income and cash may be suggested (depending on the clients’ risk tolerance and
financial needs) to enhance the social impact of a client’s portfolio, without necessarily enhancing
expected financial performance.
Our Investment Management allocation strategy is based on a combination of NorthStar’s current
market outlook and a client’s financial needs, investment horizon, and tolerance for risk. This asset
allocation is reviewed annually and otherwise when required due to changing market conditions or
client need. The equity portion of a client portfolio consists, in most cases, of a “buy list” of
approximately 40- 45 global companies, selected to provide risk diversification across market
capitalization size and industry sectors relative to a global benchmark, with the goal of adding alpha
1
through idiosyncratic stock performance. With a long-term horizon, we purchase stocks with the
intention of holding them for five to ten years.
Our “buy list” of fixed income investments are selected from a pool of individual federal agency bonds,
certificates of deposit, treasuries, inflation protected treasuries, municipal bonds, and corporate bonds.
We select bonds that mature within a time horizon with which we feel comfortable given current bond
yield curves and client liquidity needs with the goal of holding them until maturity. We match bond
selections with the individual needs of each Investment Management client. Often Investment
1 Defined as the excess return of the fund relative to the return of the benchmark index.
Management clients choose to add outside, non-publicly traded investments to their existing portfolios.
These Outside Investments in NorthStar client portfolios may consist of private equity investments, real
estate investment trusts, private limited partnerships, community loan funds, micro-lending products,
private loans and certificates of deposit (see the full description below of Outside Investing). These
investments may be made in response to a client’s desire to have a more direct relationship with an
organization or impact on a project in their community or area of interest. While these investments are
made with input from NorthStar as to client suitability relative to risk and client objectives, they are
either held in custody by the client or by the issuing organization. NorthStar monitors and facilitates
transactions related to these investments as part of the management process, providing
recordkeeping, funding capital calls, depositing interest and dividends and return of principal, all with
written authorization from the client.
The asset allocation of each NorthStar portfolio is client specific, and we are also able to modify each
client portfolio to include or exclude specific investments based on the individual client’s wishes and
history. Our priority is to have each client portfolio reflect the desires of the client with respect to their
social concerns and financial needs.
Outside Investments in NorthStar client portfolios may consist of investments such as private equity,
mission investments, real estate investment trusts, private limited partnerships, community loan funds,
micro-lending products, private loans and certificates of deposit. These investments may be made in
response to a particular client’s desire to have a more direct relationship with an organization or impact
on a project in their community or area of interest. Investments in private companies and socially
significant projects focused on such priorities as renewable energy, clean water, healthy foods, and
sustainable farming, ranching and forestry are evaluated on a case-by- case basis and integrated into
a client’s full investment portfolio where appropriate. These evaluative services are available to all
clients but are better suited to clients who are able to shift portions of their portfolios to higher levels of
illiquidity. The investments are directed and authorized by the client, with input from NorthStar as to
client suitability relative to risk and client objectives. Any securities associated with these investments
are held in custody by the client or the issuing organization, and NorthStar will not have custody.
NorthStar will, however, monitor the transactions related to these investments and provide
administrative assistance with record- keeping, capital calls, interest and dividends received, and
return of principal. The client directs the issuer to provide NorthStar with copies of all correspondence
from the issuers.
Portfolio Management Services
NorthStar provides portfolio management and investment advisory services primarily to individuals,
high net worth individuals or families, and charitable organizations. The firm manages client assets
based on the individual goals, objectives, time horizon, and risk tolerance of each client.
We offer discretionary portfolio management services. Our investment advice is tailored to meet our
clients' needs and investment objectives.
If you participate in our discretionary portfolio management services, we require you to grant us
discretionary authority to manage your account. Subject to a grant of discretionary authorization, we
have the authority and responsibility to formulate investment strategies on your behalf. Discretionary
authorization will allow us to determine the specific securities, and the amount of securities, to be
purchased or sold for your account without obtaining your approval prior to each transaction. We will
also have discretion over the broker or dealer to be used for securities transactions in your account.
Discretionary authority is typically granted by the investment advisory agreement you sign with our
firm, a power of attorney, or trading authorization forms.
We may also offer non-discretionary portfolio management services. If you enter into non-discretionary
arrangements with our firm, we must obtain your approval prior to executing any transactions on behalf
of your account. You have an unrestricted right to decline to implement any advice provided by our firm
on a non-discretionary basis.
In providing account management services, we accept client restrictions on the specific securities or
the types of securities that may be held in your account.
Donor Advised Fund Services
Some NorthStar clients will establish donor advised funds through a third-party charitable program,
The funds will be managed in accordance with the specific investment policies and guidelines of the
Charitable Platform. Clients will establish a donor advised account, transfer funds earmarked for
charitable donation and recognize a tax deduction in the year that funds are transferred into an
account opened on a Charitable Platform. The funds remain in such account until the client designates
a charity, an amount and a date to donate to such charity.
Under independent advisor programs established within the Charitable Platform, donors nominate an
independent investment adviser, which could include NorthStar, to manage accounts established on
the Charitable Platform. If nominated, NorthStar will manage the donor’s account pursuant to
investment guidelines established by the Charitable Platform.
Wrap Fee Program(s)
NorthStar manages accounts in wrap fee programs sponsored by third-party financial services firms
(typically broker/dealers). NorthStar has entered into an agreement to participate as an outside
investment manager in Morgan Stanley’s Investment Management Services (“IMS”) program. In a
wrap program, NorthStar acts as an outside manager with the custodian handling all transactions. A
wrap fee program is an investment advisory program under which a client typically pays a single fee to
the sponsor based on assets under management. Fees paid are not based directly upon transactions
in the client’s account or the execution of client transactions. The program sponsor determines the fee
to charge to the wrap fee program clients and has primary responsibility for client communications and
service. NorthStar provides investment management services. The program sponsor is typically the
executing broker/dealer of client portfolio transactions, and in most cases, provides custodial services
for the client’s assets for the single fee paid by the client to the sponsor. Wrap fee accounts are
considered directed brokerage accounts. When determining whether to participate in a wrap fee
program you should consider, among other things, our brokerage practices and the fees charged by
the program sponsor in relation to the expected trading volume. (Item 12 provides more information
about our brokerage practices, including our treatment of directed brokerage accounts.)
Payment of advisory fees to NorthStar and wrap fees to the sponsor will increase overall costs.
Therefore, performance will differ in these “wrap fee” arrangement portfolios in comparison to other like
managed portfolios. We choose investments and manage the accounts of clients in the wrap fee
program the same way we manage other client accounts in similar strategies, and these clients have
the same access to their portfolio managers as all other clients. However, because wrap fee programs
are often offered by or connected to a broker-dealer, we will use that broker-dealer when placing
trades for those accounts.
Types of Investments
We offer advice on equity securities, corporate debt securities (other than commercial paper),
certificates of deposit, municipal securities, variable annuities, United States government securities,
and ETFs. Additionally, we may advise you on various types of investments based on your stated
goals and objectives. We may also provide advice on any type of investment held in your portfolio at
the inception of our advisory relationship.
Since our investment strategies and advice are based on each client’s specific financial situation, the
investment advice we provide to you may be different or conflict with the advice we give to other clients
regarding the same security or investment.
At NorthStar we incorporate, to the best of our ability, legal and tax information from your other
financial advisors including accountants, lawyers, outside trustees, financial planners, and real estate
advisers. Our hope is that by maintaining contact with your outside advisors, the investing and
allocation in your NorthStar account will reflect the entirety of your financial goals. We have close
working relationships with several lawyers and accountants and can provide our clients with referrals if
necessary. We do not receive any referral fees or compensation of any kind for our
recommendations. Each year we consolidate 1099s, charitable giving records, fee reports, capital
gains, etc. for many of our clients, mail this information to the client’s tax adviser, and consult with the
adviser until the return is filed as necessary.
IRA Rollover Considerations
As part of our investment advisory services to you, we may recommend that you withdraw the assets
from your employer's retirement plan and roll the assets over to an individual retirement account
("IRA") that we will manage on your behalf. If you elect to roll the assets to an IRA that is subject to our
management, we will charge you an asset-based fee as set forth in the agreement you executed with
our firm. This practice presents a conflict of interest because the people providing investment advice
on our behalf have an incentive to recommend a rollover to you for the purpose of generating fee-
based compensation rather than solely based on your needs. You are under no obligation,
contractually or otherwise, to complete the rollover. Moreover, if you do complete the rollover, you are
under no obligation to have the assets in an IRA managed by our firm.
Many employers permit former employees to keep their retirement assets in their company plan. Also,
current employees can sometimes move assets out of their company plan before they retire or change
jobs. In determining whether to complete the rollover to an IRA, and to the extent the following options
are available, you should consider the costs and benefits of:
1. Leaving the funds in your employer's (former employer's) plan.
2. Moving the funds to a new employer’s retirement plan.
3. Cashing out and taking a taxable distribution from the plan.
4. Rolling the funds into an IRA rollover account.
Each of these options has advantages and disadvantages and before making a change we encourage
you to speak with your CPA and/or tax attorney. If you are considering rolling over your retirement
funds to an IRA for us to manage, your advisor will review important points for your consideration
before you do so. It is important that you understand the differences between these types of accounts
and to decide whether a rollover is best for you. Prior to proceeding, if you have questions contact your
investment adviser representative, or call our main number as listed on the cover page of this
brochure.
Assets Under Management
As of December 31, 2023, NorthStar’s total discretionary client assets were $699,264,630.