Investment Philosophy

Investment Philosophy Overview

The most important ingredient in North Side Bank's success managing your portfolio is understanding your expectations, goals and objectives as well as your tolerance for risk. In order to provide the highest quality investment results and administration services it is essential to establish your investment objectives.

The four investment objective categories we consider are:

1.Capital Preservation: Emphasis on preserving capital and providing income for the  short term. Inflation and capital growth are not considered.

2.Income: Emphasis on maximizing future income and preserving income for the long term.

3.Balanced: Provides income and growth to keep pace with inflation.

4.Growth: Emphasis on long-term capital growth and above average inflation protection. Income is a secondary objective.

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Structuring a Portfolio

At the outset of our relationship, our investment manager works with you to ensure that we fully understand your cash flow needs, your comfort level and your expectations in order to develop a portfolio appropriate for you. The following table provides an outline of the asset allocation guidelines according to your investment objectives.

Once the portfolio objectives have been determined, the portfolio manager will select a mix of investments that takes advantage of the current market and the Trust Investment Committee's current policy. Stocks are selected from current recommended lists and fixed income securities will be purchased to provide the highest income with the least amount of risk.

One of the primary functions of the investment manager is to communicate with you and maintain a portfolio that delivers the anticipated return and adapts to your changing needs.

It is our goal to help you develop an effective long-term investment strategy and maintain consistent communication to ensure that your goals are being met with a properly structured portfolio.

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Wealth Builder

As a part of the portfolio structuring and asset allocation, we have developed the North Side Bank Wealth Builder. The Wealth Builder consists of approximately 30 to 35 individual stocks and is managed by the North Side Bank & Trust. In selection of stocks, the Trust Investment Committee utilizes an extensive research network, which includes top-rated analysts representing several  brokerage firms including Paine Webber, Merrill Lynch, and Donaldson, Lufkin & Jenrette. Value Line and other investment resources are also employed.

To enhance performance, all transaction costs are minimized by the trust department's institutional commission agreements with brokerage firms. Commissions range from 7 to 15 cents per share depending on the number of shares purchased or sold.

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Fixed Income Investments

Fixed income investments are made in securities rated 'A' or better by major investment grading firms. We concentrate our issue selection on high quality US Treasury, Federal Agency and corporate and tax-free bonds. Individual income and liquidity needs are considered when designing a bond portfolio.