NorthStar Investment Model Diversification

We believe portfolios should match client objectives and be diversified by type and character of investment.

One such diversification is a balance between growth and value. Of our individual holdings receiving such a designation, as of March 31, 2008, 45% of the monies invested in stocks were invested in “growth” stocks, 8% in “value” stocks, and 47% as a blend between growth and value as designated by S&P / Citigroup.

On the same date, the model portfolio was diversified by having a 56% exposure to large capitalization companies, 13% to mid-cap concerns, 23% to foreign based non-dollar-denom-inated companies, and 8% to cash.

We also believe that investors should attain diversification through exposure to international investments. As of quarter-end, our model equities were 24% invested in direct international securities (non-dollar denominated securities trading on foreign exchanges,) 17% in securities of foreign-based companies trading on U.S. exchanges (ADRs and ADSs, etc.,) and 59% in domestic stocks (U.S. based companies trading on US stock exchanges.)

Our aggregate holdings represent exposure to numerous economic sectors.

We think it prudent to diversify our client's portfolios and are highly comfortable owning growth and value, big and small, foreign and domestic, as well as including exposure to varying economic sectors.