Frequently Asked Questions

Table of Contents

1. What services does True North offer?
2. Why is True North a fee-based service?
3. Is your management fee the only form of compensation you receive?
4. How long has True North been in business?
5. What is the minimum account size?
6. What type of investment strategies do you offer?
7. How do you select stocks for your clients portfolios?
8. How does the financial planning process work?
9. What are your fees for the services you offer?
10. Does True north utilize outside account managers?
11. Who provides prime brokerage and clearing services for client accounts?
12. What are the costs to execute trades at Goldman Sachs Execution and Clearing ("GSEC")?
13. What type of securities can I hold in my account at GSEC?
14. How often are accounts traded?
15. How often do you review my investment portfolio?
16. How often do you meet with clients?
17. How often and what kind of account statements and reports do customers receive?
18. What do I receive at years end to assist with income tax preparation?
19. Does True North consult its clients when making trades?
20. What does "discretion" mean?
21. How do I know True North is really the firm for me?

Any other questions? Please contact us at 1-800-610-4125 and we will be happy to assist you.

1. What services does True North offer?

True North provides investment management services through managed accounts and alternative investment vehicles. We help organize your financial freedom by offering financial planning, tax and strategic advisory services. We educate our clients through our weekly market commentary, quarterly newsletter, one-on-one consultations, informative articles and timely e-mail alerts.

2. Why is True North a fee-based service ?

Many advisors will charge a fee for financial planning plus an investment management fee based on percentage of assets. At True North we align our interests entirely with yours by offering all of our services to you under simple pricing structure tied to growth of your account.

3. Is your management fee the only form of compensation you receive?

Yes, we do not receive commissions on trades made for your account and we do not skim interest off of your cash balances. We have no conflicts of interest whatsoever.

4. How long has True North been in business?

True North was founded in January of 2005 by Michael Froese to offer high-net-worth individuals the best of professional portfolio management, financial planning and personalized service.

5. What is the minimum account size?

The minimum account size is $100,000.

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6. What type of investment strategies do you offer?

We have extensive knowledge of and experience with many time-tested investment strategies. We will discuss these strategies with you to create a plan tailored to your needs. We created our proprietary "Leading Edge" portfolio strategy to incorporate and offer the best of all these investment strategies. For further information, please contact Michael Froese at (800) 610-4125.

7. How do you select stocks for your clients portfolios?

We look for opportunities to buy or sell gainfully, companies that are under or overvalued. Our comprehensive stock screening process identifies stocks with the highest future estimated returns for your portfolio. Additional in-depth analysis and risk management is performed for each security and the stock market as a whole. Those ideas exhibiting the highest probabilities of success are then selected for investment.

8. How does the financial planning process work?

We request that a client complete our Confidential Investor Data Form and Financial Planning Questionairre . Our team will then arrange a meeting to further examine your specific needs and goals so that we can create a personalized plan for you. Your plan will summarize your current situation and address all of your objectives and needs, including a net worth statement, estate planning, education funding. Once your plan is created, we will explain the plan in detail, recommending what action we would take. We then determine a course of action with you, implement and later update your plan providing personal attention every step of the way.

9.What are your fees for the services you offer?

For "qualified investors", all of our services are included under the following management fee structure:

30% plus 5%

For those investors we agree to work with who do not meet the SEC's definition of "qualified" ($1.5 million dollars net worth or $750,000 under our management), we offer a fixed annual management fee.

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10. Does True north utilize outside account managers?

No, we are not salespeople selling someone else's service. We offer our clients direct access to the management of our firm.

11. Who provides prime brokerage and clearing services for client accounts?

All client accounts are introduced by Shoreline Trading Group, LLC to Goldman Sachs Execution and Clearing, L.P. ("GSEC") who provides all clearing and prime brokerage services.

12. What are the costs to execute trades at Goldman Sachs Execution and Clearing ("GSEC")?

7/10th of a penny per share with a three dollar minimum per trade. For example - purchase 100 shares wpuld cost $3.00 and to purchase 1000 shares would cost $7.00.

Client financing rates are as follows:

• Current Federal Funds rate less 1% on all credit balances and for all short stock rebates.
• Current Broker Call rate plus 1% on all debit (margin) balances.

13. What type of securities can I hold in my account at GSEC?

GSEC will not accept mutual fund shares or annuities. All other securities are accepted.

14. How often are accounts traded?

Depends on the clients objectives, risk tolerance, investment time-frame and strategies being employed. Clients have access to daily account statements disclosing all trading activity.

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15. How often do you review my investment portfolio?

We monitor portfolios daily.

16. How often do you meet with clients?

We meet with you at least quarterly to comprehensively review your account and discuss any changes to your situation.

17. How often and what kind of account statements and reports do customers receive?

You will receive a user name and password to log into GSEC's customer access site. On a daily basis, you can review your account, track historical data, and drill down for advanced analysis. Customer access site capabilities include, asset summary information, profit and loss, portfolio appraisal, capital activity, and trade activity. The information can be customized, sorted and downloaded to Excel spreadsheet or PDF format. You will also receive a monthly statement from GSEC and FixQ performance and tax reports from True North. FixQ provides clear and comprehensive performance and tax reports for easy to understand account review and reporting.

18. What do I receive at years end to assist with income tax preparation?

At year's end you will receive a summary from True North which includes your accounts performance for the year and a capital gains and loss worksheet for tax preparation.

19. Does True North consult its clients when making trades?

Our practice is to consult the client regarding the different investment strategies we will be implementing and what our clients can expect from those strategies. However, we will not discuss each and every trade with the client. All of our accounts are discretionary. Any client may, of course, call us to discuss any moves we are anticipating or have made.

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20. What does "discretion" mean?

Discretion means having the ability to trade in a clients account without the clients permission.

21. How do I know True North is really the firm for me?

Because as a former SEC examiner, brokerage firm owner and portfolio manager; I am very familiar with the difficulties investors face. Not only must you be able to trust someone who understands your needs, but that person must also have the knowledge, experience and skills to help guide you to financial freedom. We founded True North to give you:

•  Portfolio management which strives for dependable returns.

•  The comfort that our capital is invested alongside yours.

•  Our proprietary "Leading Edge" portfolio approach.

•  Superior planning and customer service.

•  No conflicts of interest and a history of integrity.

•  A professional money manager that will handle your account personally.

With over a decade of experience helping investors, everything we do will always be in the best interest of YOU.

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