Advanced Asset Management Advisors Inc

Item 5 – Fees and Compensation

The specific manner in which fees are charged by AAMA is established in a client’s
written asset management agreement with AAMA. AAMA will generally bill its fees
on a quarterly basis in advance. Clients may elect to be billed directly for fees or to
authorize AAMA to directly debit fees from client accounts. Management fees shall
not be prorated for capital contributions and withdrawals made during the
applicable calendar quarter. Accounts initiated or terminated during a calendar
quarter will be charged a prorated fee based on the number of days the account
was open during the period. Upon termination of any account, any prepaid,
unearned fees will be promptly refunded, and any earned, unpaid fees will be due
and payable.

AAMA’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which will be incurred by the client. Clients may incur
certain charges imposed by platforms/custodians, brokers, third party investment
advisors, and other third parties, such as fees charged by managers, custodial fees,
odd-lot differentials, transfer taxes, wire transfer and electronic fund transfer fees,
and other fees and taxes on brokerage accounts and securities transactions. Clients
of AAMA whose assets are partially or fully invested in mutual funds, ETF shares, or
variable annuity sub-account shares will pay a direct management fee to AAMA and
an indirect management fee through the investment in the shares of the mutual
funds/ETF Shares or annuity sub-account. Such charges, fees, and commissions are
exclusive of and in addition to AAMA’s fee, and AAMA does not receive any portion
of these commissions, fees, and costs.

Item 12 describes the factors that AAMA considers in selecting or recommending
broker-dealer platforms/Custodians for client transactions and determining the
reasonableness of their compensation (e.g., commissions). In all cases, the client
makes the final selection of the specific Custodian by executing a new account
application with that Custodian.

AAMA assists some clients in the selection of various cash management/money
market vehicles. AAMA does not charge for this service.

AAMA’s management fee for clients is calculated at the annual rate of 2.00% or less
of the value of such assets. Management fees are negotiable. Placement
Agent/Solicitor-referred clients (see Item 14) generally pay a higher advisory fee
than clients that engage AAMA directly.

Fees are refundable on a pro-rated basis for both fixed fee and percentage of asset
value accounts. The client has the right to terminate both a fixed fee and
percentage of asset value contract within five (5) business days of entering into the
contract without any penalty and with a full refund of all management fees to the
client. The client or AAMA may terminate an investment advisory contract at any
time.

Some of AAMA’s employees and supervised independent contractors receive
compensation based upon the amount of management fees generated by their
sales and marketing efforts, and thus have a financial interest in the client selecting
AAMA to manage clients’ assets.

Clients of AAMA receive a copy of the firm’s Privacy Policy and Notice upon entering
into an investment advisory relationship with AAMA. Annually, within 90 days of
AAMA’s fiscal year end, clients receive an updated copy of AAMA’s Privacy Policy
and a copy of the firm’s Proxy Voting Policy.

AAMA receives compensation from the sponsors of Strategist Programs based on
assets in such programs. However, AAMA does not directly receive compensation
from the sponsors of Strategist Programs for strategies that are invested in the
Affiliated Mutual Funds. Rather, AAMA is compensated through the fees it receives
from the Affiliated Mutual Funds recommended to such programs. AAMA receives a
management fee ranging from 0.75% - 1.00% of the Funds’ assets (a portion of
which may be waived by AAMA) from the Affiliated Mutual Funds. The management
fee is calculated daily and paid monthly in arrears based on the average daily net
assets of the Funds.

AAMA provides all necessary office facilities, overhead, and personnel expenses
necessary to provide investment services to the Affiliated Mutual Funds subject to
the terms of the investment advisory agreement. The Affiliated Mutual Funds are
responsible for their own expenses, which include management fees and other fund
related expenses. AAMA does not receive any other compensation from the
Affiliated Mutual Funds. AAMA has negotiated certain revenue sharing agreements
with financial intermediaries. The revenue sharing payments are paid out of the net
operating profits AAMA earns from managing the Affiliated Funds. The fees
associated with such agreements are paid by AAMA to the financial intermediaries.
Please refer to the Affiliated Mutual Funds’ prospectuses and registration
statements for complete information on the fees, expenses, and investment risks
associated with an investment in the Funds.

Item 7 – Types of Clients
AAMA provides investment advisory services to the Affiliated Mutual Funds,
individuals and families, individual retirement accounts (IRAs), corporations,
retirement plans (pension, profit sharing, and 403b Plans), investment advisors,
broker dealers, and charitable organizations. AAMA provides Section 3(21)
investment advisory services, specifically related to retirement plans.