Northstar Investment Advisors' Indexes Yield Double Digit Returns in 2011

Share Article

Indexes focused on building income beat S&P 500

“I think the performance of our indexes demonstrates the value of an approach designed to build cash flow," said Northstar Investment Advisors CEO Charles Farrell.

A focus on building income rather than beating the market yielded strong results for Northstar Investment Advisors LLC, which saw its two retirement indexes post returns of more than 10 percent in 2011. The Farrell-Northstar Retirement Income Index, which includes a mix of fixed-income securities and dividend-paying stocks, produced a one-year total return of 10.82 percent. The Farrell-Northstar Retirement Stock Income Index, consisting of 48 equally-weighted stocks, posted a total return of 11.08 percent in 2011. In comparison, the S&P 500 yielded a total return of 2.12 percent last year.

“I think the performance of our indexes demonstrate the value of an approach designed to build cash flow. The indexes also help investors understand how to create significant wealth protection and potential for growth even during times of volatility,” said Northstar Investment Advisors CEO Charles Farrell.

Introduced in June 2008, right before the financial crisis slammed the stock market, the FNRI Index and the Stock Income Index have produced total annualized returns of 8.10 percent and 8.25 percent respectively since inception. The S&P 500 posted a total annualized return of 1.75 percent over the same time period.

“Most indexes are constructed to focus on price changes, whereas our indexes are constructed to focus on the production of income and a growing income stream,” said Fred Taylor, president of Northstar Investment Advisors.

The FNRI Index is comprised of approximately 50 percent equities and 50 percent fixed income and is designed to reflect the unique goals of investors who must live off their returns. The Securities included in the Index are selected to help investors meet the following investment objectives:

  •     Current and Stable Income
  •     Growing Income
  •     Principal Protection
  •     Capital Gains

The Stock Income Index was created to highlight the returns and performance of only the stock holdings contained in the FNRI Index. The Index is well diversified and holds stocks from all 10 of the major stock market sectors: Consumer Staples, Industrials, Health Care, Technology, Energy, Consumer Discretionary, Materials, Utilities, Telecommunications and Financials.

About Northstar:
Northstar Investment Advisors, LLC is an independent registered investment advisor in Denver, CO. Northstar seeks out dividend-producing equities and fixed income holdings to build portfolios that will last a lifetime. The firm primarily works with personal and family assets, family trusts, IRAs, 401k plans, and profit sharing plans. Northstar had more than $350 million of assets under management as of December 31, 2012.

Disclosure and Disclaimer: The Farrell-Northstar Retirement Income Index is a list of fixed income and equity securities. The Farrell-Northstar Retirement Stock Index consists of 48 different companies. Securities are selected for inclusion in the indexes at the discretion of Northstar Investment Advisors and are subject to change at any time. The indexes are for informational and educational purposes only. Investors cannot invest in an index, and the indexes do not represent an actual security or portfolio. Index returns do not include trade and transaction costs, management fees or tax costs. Past performance is no guarantee of future returns. The returns have been certified by Standard & Poor's under the custom index program.


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Erika Gonzalez
Visit website