Best Execution Practices
Northstar Financial Planners provides economical global asset allocation for its clients through the use of institutional class mutual funds. As part of our fiduciary obligation, we have sought custodians who perform trades for our clients at reasonable, competitive fees. We freely share that cost information with our clients. Aside from obtaining the best possible transaction costs, best execution has little relevance in the world of mutual funds where all transactions are made at close of business net asset value for both purchases and sales. Price improvement, liquidity, and timing are simply not factors with mutual fund purchases.
We do not routinely trade individual securities. In the rare case that we purchase or sell an individual security, we rely on the trading desk of the client’s custodian. All of our client custodians are required by SEC regulations to publish their procedures for guaranteeing best execution.