Fee Structure

North Growth U.S. Equity Fund

"The North Growth U.S. Equity Fund is a no-load fund with a Management Expense Ratio (MER) of 1.20% in 2009."

Load: A load is a commission that you pay when you buy or sell units of some mutual funds.

North Growth Funds are no-load, meaning that you are not charged a fee for purchasing or selling units of a North Growth Fund.

Management Expense Ratio (MER): The MER represents the total expenses of a fund for a one-year period expressed as a percentage of the fund’s daily net asset values.

The North Growth U.S. Equity Fund’s MER over the past five years was as follows:

‘All-in-one’ Management Fee: As Manager of the Fund, North Growth Management Ltd. provides research, accounting, sales and management services and acts as investment advisor. As of 2006, management fees are calculated daily and payable monthly at the annual rate of 1.20% of the net asset value of the Fund, and the Manager absorbs all other expenses of the Fund. (Prior to 2002, management fees were calculated and payable quarterly at the annual rate of 1% of the net asset value of the Fund, and the Fund was responsible for paying its own expenses.)

Total Fund Expenses: The North Growth U.S. Equity Fund’s MER and its ‘all-in-one’ management fee represent the same value: namely the total annual expenses (including management fees) paid by the Fund. The numbers are not cumulative; they are essentially two different ways of presenting the Fund’s expenses. In both calculations, the dollar amount of the expenses are identical, it is simply the base used to calculate the percentage value that differs. The MER is calculated using average daily net asset values, whereas the ‘all-in-one’ management fee is calculated using the quarter-end net asset value of the Fund.

How do fees affect you? You do not pay a commission or fee when you purchase or redeem units of the North Growth U.S. Equity Fund.

Fund expenses are deducted before performance numbers are calculated.