• The short answer is yes, but as is with most details financial related, the answer is a bit more complex.
• The Financial Advisors at Northern Pacific Asset Management operate primarily as an Investment Advisor Representatives. We do however, hold “dual” registrations as both “Investment Advisor Representative” and “Registered Representative” which means we may operate as both a fiduciary Investment Advisor Representative and under certain circumstances as a Registered Representative aka “broker.” We’ve specifically made the business decision to operate within this dual registration model to better serve the needs of our clients that could not be met solely under the “Investment Advisor Representative” Securities and Exchange Commission (SEC) registration.
• Our business model primarily operates and derives the majority of its revenue as a “fee-based, Investment Advisor.” This means we charge an annual asset-based fee on the investable assets we manage and/or charge for “Financial Planning, Financial Consulting and Non-Discretionary Investment Advisory (NDIA)” services on a bundled subscription, hourly, one-time, quarterly, or annual basis for a set fee that is negotiated between us and our client.
• As a fiduciary, under the Securities and Exchange Commission’s (SEC) regulatory umbrella and the “Investment Adviser’s Act of 1940” Investment Advisors are required to act in the best interest of clients and not to place their own interests ahead of their clients. Investment Advisors have a duty of undivided loyalty and utmost good faith and do not engage in any activity in conflict with the interest of any client.
• However, in order to recommend, provide, and manage certain products and services not regulated by the SEC and Investment Adviser’s Act of 1940, we are required to hold a separate, dual registration as a “Registered Representative” under the umbrella of the Financial Regulatory Authority (FINRA), SEC and National Association of Insurance Commissioners (NAIC). Here, as a Registered Representative or Insurance Producer/Broker we are upheld to a separate and distinct, “Best Interest” Standard of Conduct. Under these circumstances, we receive commissions on certain brokerage, 529 plans, insurance, or annuity products which could potentially represent a conflict of interest to our clients.
• Under these circumstances, as fiduciaries, we have a duty to remain transparent and fully disclose these specific situations if they arise. Our policy is to always be fully transparent with our fees, commissions, and conflicts of interest in order to operate in the best interest of our clients at all times, with no exceptions. We consider the confidence and trust our clients bestow upon us with their financial livelihoods a great honor and take particular pride in our ethical standards and reputation. Therefore, we make every effort to not tarnish it or our ethical standards with anyone for any amount of compensation.
• For more information on our dual roles please refer to Osaic Wealth Customer Relationship Summary Form CRS and Osaic Advisory Services Customer Relationship Summary Form CRS.

Our fees vary depending on the service group you are part of. Below, you can find detailed fee schedules for each service group:

• Wealth Builder Services
• Retirement Client Services
• Private Client Services
• Enterprise Strategy Services

• Northern Pacific Asset Management has developed a systematic philosophy and process that governs our Wealth Management and Investment Management methodology, which we refer to as Sustainable Advantage®.
• The Northern Pacific Sustainable Advantage® is a fundamentals, value and factor-driven rules based investment process inspired by Benjamin Graham / David Dodd / Warren Buffett and Berkshire Hathaway security/business analysis coupled with the Fama-French “Three-Factor-Model” (TPM) that expands on the Nobel Prize awarded “Capital Asset Pricing Model” (CAPM).
• Sustainable Advantage® applies post-financial crisis lessons learned regarding liquidity, over-concentration in illiquid assets, and significant shortfalls/bias in financial industry high-fee “black box” investment products and its standard for asset allocation- “modern portfolio theory.”
• Minimizes Modern Portfolio Theory’s use of “expected” future values/returns, correlation & statistical risk measurement protocols as a benchmark for asset allocation along what we believe to be the “inefficient frontier.”
• Instead applies Sharpe Ratio (a measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment) as standard of measuring “potential” risk- adjusted returns.
• Overweight’s capital to high-quality, fundamentally sound and economically-sustainable securities acquired at a “reasonable price” as a risk reduction measure.
• Reduces over-reliance on broad diversification, statistical correlation & rebalancing to non-performing asset classes and securities with bias or conflicted analysis as a risk management tool.
• Eliminates performance dilution from over-diversification and equal- weighting equity lacking “Sustainable Competitive Advantage” and excludes allocation to debt securities with speculative risk profile fundamentals that expose portfolios to unnecessary risk, losses and common Mr. Market / Wall Street herd scenario of “the blind leading the blind” as a method of risk management.
• Rejects what we believe to be industry’s appalling overuse of illiquid “non-correlated asset classes”, especially “black box” high-fee-commission-risk non-liquid “alternative” investment vehicles geared for non-institutional investors such as non-traded Real Estate Investment Trusts, Oil and Gas Partnerships, Equipment Leasing, Business Development Companies, Commodity Funds and non-liquid Managed Futures.
• Utilizes common sense approach to tax efficiency by not selling high-quality performing investments for the sake of rebalancing quarterly, semi-annually or annually, thus creating potential unnecessary tax-liability for clients and further diluting total investment return.
• After many years of careful observation and analysis, our conclusion is that “modern portfolio theory” risk measurement, asset allocation and rebalancing:
  • Redistributes unconscious investment capital from quality securities, well managed companies and investment managers with positive economic fundamentals to commoditized asset classes, poorly managed companies, subpar investment managers with too often negative economic fundamentals.
  • Unintentionally creates pockets of market capitalization weighted index mirroring within portfolio as a risk reduction measure.
  • Provides investors subpar investment return with misleading risk management profile.
  • Forces investors to overpay in taxes and fees further reducing total return.
  • Exposes investors to extraordinarily high fee, high risk and often illiquid “alternative” securities as an industry standard.
  • Subsidizes and provides exit-liquidity to Wall Street market makers, institutional investors and mutual fund industry with retail investor capital and sustains existence of poorly-conceived financial products at the expense of non-professional investor class.
• We believe effective portfolio management, wealth building and clarity of investment philosophy rests on the foundation of your wealth- the long-term “ownership” equity core. This includes:
  • Privately owned real estate holdings, closely-held business/private equity interests, company issued stock options and concentrated positions in liquid publically-traded individual equities with a “Sustainable Competitive Advantage.”
• By defining and modeling the “foundation” of your wealth, we’re able to clarify your total equity picture while facilitating the definition of the investment policy governing investment values, tax management needs and income/liquidity/diversification requirements in order to achieve your defined and evolving lifestyle & financial life aspirations.
• Your “Wealth Foundation” also aids you in defining the process for dividing excess profits and income from cash flow, illiquid closely held business and real estate interests for diversification and future liquidity needs while managing over-concentrated positions in company issued stock as a risk reduction measure.
• Once we’ve defined your foundation and investment policy, we begin acquiring new and increasing existing individual long stock positions in companies with “sustainable competitive advantage” to reinforce your equity core with a diversified “economic moat.”
• Our tax-management goal with equity core is to maximize tax efficiency by holding positions permanently unless economic conditions determine otherwise and only taking long term capital gains when necessary.
• If the situation arises, we utilize tax-loss harvesting for non-performing positions and reallocation.
• We achieve further diversification through dynamic Factor based strategic overlay allocations across multiple investment factors. This effectively allocates a portion of liquid investment capital to the drivers of investment return known as “factors” using low cost Smart-Beta Exchange Traded Index Funds and Mutual Funds.
  • Dynamic Factor Overlay (DFO) smooths out and reduces portfolio volatility & enhances investment return for concentrated “Equity Core” and captures market based performance.
  • Reduces over-concentration risk and reinforces “economic moat” of your equity core.
  • Baseline factor allocation equal-weight “Quality”, “Dividend Growth”, “Value”, “Size”, “Multi” & “Low Volatility” Factors.
  • DFO will dynamically “tilt” to overweight specific factors based on client objectives, requirements, age, values, investment style, risk tolerance and current market cycle/environment.
• Income generating mechanism enhanced throughout equity acquisition process focusing on tax efficiency and dividend growth, especially given current low interest rate environment.
• Dividend growth is a sustainable alternative to low-yield fixed income in a rising interest rate environment with preferential tax treatment to non-municipal debt securities.
• Sustainable competitive advantage individual equity with historically increasing dividends provides inflation protection and growing income stream.
• Tax efficient dividend factor based exchange traded funds.
• Master Limited Partnership (MLP) funds for tax efficiency and income quality.
• Value based individual bond acquisition focused on quality, duration & interest rate risk.
• Separately Managed Accounts using third party asset managers that specialize in specific sectors and are targeted by porfolio design based outcomes.
• Factor based flexible bond funds.
• Multi-asset income funds.
• Municipal bond funds.
• Establish minimum liquid cash requirements with FDIC insured bank deposits up to $2.5 million for individual accounts and $5 million for joint accounts.
• Increase return on cash positions with money market funds and short-term credit and government backed securities.
• Income generating mechanism throws off cash for reinvestment in core equity, maintaining strategic and tactical factor allocation and for income purposes.

We offer comprehensive private banking solutions designed for high-net-worth clients through BNY Mellon | Pershing. These solutions include tailored lending strategies, mortgage options, and credit services to help manage both sides of your financial portfolio. Our services are aimed at enhancing your liquidity, tax planning, supporting real estate purchases, and meeting other financial goals.

We offer a robust suite of specialized residential mortgage solutions, including construction financing, interest-only mortgages, 100% financing options, and mortgage pre-approval programs. These solutions are tailored to meet the unique home financing needs of high-net-worth clients, whether for primary residences, vacation homes, or investment properties.