1607 Capital Partners LLC

Item 5 - Fees and Compensation
Fees charged by 1607 vary based on Client and/or strategy, but generally include a management
fee, a performance-based fee, or a combination thereof, which are at rates and terms described in
the Client’s investment management agreement and are generally not negotiable. However, some

large or strategic investors may receive more favorable economic terms than other investors. 1607
reserves the right to enter into similar arrangements in the future. Current and certain former
employees of 1607 and/or their related person’s investments are not typically subject to the fees
described above. Upon termination of 1607’s investment management or investment advisory
role, any earned, unpaid fees would be due and payable. The timing of when fees are paid depends
on the individual governing documents of the Client. Asset based management fees generally
range between 0% and .75% and are charged quarterly in advance or in arrears as stated in each
Client’s governing documents, based on a percentage of the client's assets under management at
the beginning or end of the calendar quarter, subject to adjustments for contributions to, or
withdrawals from, the Client’s account. Performance based fees generally range between 0% and
30% and will generally be based upon a share of the capital gains or capital appreciation of the
funds and securities in a Client’s account above those of the stated benchmark for the particular
Client. Performance fees will only be charged to qualified clients and in accordance with Rule
205-3 under the Advisers Act.

Investment advisory services begin with the effective date of the Investment Management
Agreement. If applicable, fees will be adjusted pro rata based upon the number of calendar days in
the quarter that the Agreement first becomes effective. Fees are generally deducted from the
assets of the Client in accordance with the terms of the investment management agreement or
Fund limited partnership agreement. Fund investors do not have the ability to choose to be billed
directly for fees incurred. Managed Account fees can either be deducted directly from the client's
brokerage account or paid directly by the Client pursuant to a written agreement.

1607’s advisory fees are separate and distinct from fees and expenses charged by the managers of
the CEFs or ETFs that are recommended to clients. Additionally, the fees paid to 1607 are
exclusive of custodial and transaction costs paid to custodians, brokers, or any other third parties.
Investors in Funds also bear their proportional share of the operating expenses particular to the
Fund in which they invest, which may include, without limitation, the following: legal fees;
accounting fees; custodian fees; fund administration fees; organizational and registration
expenses; transactional fees, filing fees, any insurance, indemnity or litigation expense, and
certain offering costs. In general, 1607 will allocate expenses that are shared across multiple
Clients on a pro-rata basis based on assets under management. However, in certain situations 1607
may assign expenses in a different manner with the goal of allocating expenses in a fair and
equitable manner. Clients should carefully review their governing documents to gain a full
understanding of all fees and expenses associated with their Managed Account or interest in a
Fund prior to investment.

1607 has adopted a Security Valuation Policy to govern the valuation of securities held in Client
portfolios. In certain cases, valuation procedures may be memorialized in a Client’s governing
documents and generally call for valuations to be determined by a third-party administrator or
custody bank. In these cases, advisory fees are based on the security valuations provided by that
administrator or custodian. In other cases, the governing documents may not include such
provisions, in which case, advisory fees are based on 1607’s security valuations obtained in
accordance with the Security Valuation Policy. Although both 1607 and the Client’s custodian
utilize well-known, widely used, independent pricing vendors, such security valuations may differ
between pricing sources. When such variations exist, which generally only occurs on a small
number of securities (typically those in liquidation or certain foreign issues), 1607 seeks to work

with the Client administrator or custodian to determine fair value. Regardless, Client
administrators and custodians may not ultimately assign the same value to a particular security.

If for any reason a Client wishes to terminate an investment advisory contract, the Client must
provide prior written notice in accordance with the terms of their contract. The client is
responsible to pay for services rendered until the termination of the agreement.            Upon
termination, any unearned fees charged for advisory services will be refunded on a pro-rata basis.
Investors’ ability to redeem from the 1607 Funds is subject to formal notice requirements and
other restrictions. The 1607 Funds’ offering memorandum provides a summary of when investors
are permitted to make complete or partial redemptions.

Item 7 - Types of Clients
1607 provides investment advisory services to Funds and Managed Accounts. The Managed
Accounts and Funds are only offered to certain qualified investors such as pension plans, banks,
sovereign wealth funds, endowments, other investment advisers, corporations, insurance
companies, and high net worth individuals. Admission to the Funds is not open to the general
public. An investment in a Fund is generally restricted to investors that qualify as “accredited
investors,” as that term is defined under rule 501(a) of Regulation D of the Securities Act of 1933,
as amended. These Funds are exempt from registration as investment companies with the SEC
pursuant to Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act of 1940.

1607 typically will not act as investment adviser for separately managed accounts with an initial
commitment of less than $25 million, and generally require 1607 Fund investors to initially
contribute $3 million, with the exception of one fund which has an initial minimum contribution
of $250,000. As the general partner of the Funds, 1607 may waive an investor’s minimum capital
commitment, and has done so for certain investors.