Northern Rivers Conservative

Growth Fund L.P.

Fund Investment Objectives

The investment objective of Conservative Growth Fund is to maximize absolute returns on investments through securities selection and asset allocation, while using hedging activities and asset allocation in an attempt to manage market risk. Conservative Growth Fund focuses on achieving growth of capital through superior securities selection. Conservative Growth Fund pursues a long-term investment program with the aim of generating capital gains. Conservative Growth Fund is invested according to the following guidelines: the assets of Conservative Growth Fund are allocated at the discretion of the Manager to those investment strategies that balance risk, return and liquidity. Conservative Growth Fund may borrow money from brokerage firms, banks and others to make investments. Conservative Growth Fund makes use of equity derivatives, such as calls and puts, index futures and exchange traded funds to manage risk. In selecting investments for Conservative Growth Fund, the Manager primarily focuses on the securities (equity and equity derivatives) of companies which the Manager believes trade at a discount to their intrinsic value. The Manager engages in making investments for Conservative Growth Fund including, but not limited to, investments in the energy and financial services sectors. To achieve the investment objective of Conservative Growth Fund, the Manager: a) Makes long term investments of securities of issuers which the Manager believes present the greatest opportunity for capital appreciation. Such issuers will typically have strong balance sheets, strong fundamentals, strong earnings or growth (or earnings or growth potential), and will typically be demonstrably undervalued relative to earnings power or shareholder's equity; and b) Manages the portfolio's sector allocation, increasing and decreasing exposure to different sectors of the market as appropriate. Northern Rivers does not normally charge a redemption fee. We do however reserve the right to charge the lesser of the disposition expenses (including brokerage fees and/or market spread) incurred to enable the fund to fund such a redemption and 2% of the Net Asset Value of such units. In extraordinary circumstances, Northern Rivers may apply a redemption surcharge, in addition to the 2% previously noted fee, which is equal to 2% of the NAV of the units redeemed. Northern Rivers has the right to hold back up to 20% of the NAV being redeemed to provide for the orderly disposition of assets.