Q Who holds my assets?

A We will recommend a brokerage firm or bank to hold your securities and perform other recordkeeping and custodial services, such as providing account statements, tax reporting and safeguarding your assets.

Q Does Covenant trade on my behalf without consulting me first?

A After working with you to define your investment objectives and establish guidelines, we usually request discretion to buy and sell securities in your account without prior approval. Trade confirmations are sent to you when trades are executed, and all transactions are listed on your monthly account statement. We will typically consult with you regarding  major portfolio recommendations involving a substantial portion of your  portfolio.

Q Does Covenant earn brokerage commissions on bond or stock trades?

A No, Covenant is a fee-based investment advisor and does not get paid any transaction fees or commissions. We only earn fees explicitly enumerated within the fee agreement you sign during the account opening process, which are based upon assets under management.

Q Does Covenant use margins and options?

A Other than incidental use, such as minor differences in the timing of purchases and sales, we use margin only upon your specific request. We use options as a valuable tool to enhance income generation or protect gains, and we will use options in a speculative fashion to leverage upside opportunities only upon your specific request or prior consent.

Q Will Covenant sell all my current holdings?

A After defining your investment objectives, we will determine the appropriateness of retaining your existing securities. We will  continue to hold any securities we believe will assist in attaining your  objectives. Also, we may recommend holding certain securities for tax  considerations.

Q What will happen to income generated in my account?

A It will either accumulate and be reinvested, or will be remitted to you  periodically or upon your request.

Q Can I terminate my relationship with Covenant at any time?

A Yes, your agreement with Covenant can be terminated at any time  without penalty. Our fees are typically charged in arrears, so fees are  debited only up to your termination date. In order to transfer your assets,  you will need to provide us with delivery instructions for your new advisor  or custodian.

Q Do I get electronic access to my account?

A Each of the custodians we recommend will provide secure online access  to your account upon request.