Aegon Asset Management UK PLC

Item 5      Fees and compensation
A   Fee schedule
    Aegon AM UK charges investment management fees consistent with the terms agreed in the client-
    specific Investment Management Agreement (IMA) in the form of an Annual Management Charge
    (AMC). Fees are typically based on clients’ assets under management and are negotiable. Our
    standard fee structure for managing segregated investment portfolios is categorised by the specific
    investment strategy.

B   Client billing
    Clients are invoiced for investment management fees due to Aegon AM UK. We do not deduct fees
    from clients’ assets.

    Typically, the management fee is calculated and accrued monthly and payable quarterly in arrears but
    client specific arrangements can be accommodated.

C   Other fees and expenses
    Aegon AM UK investment management fees are exclusive of brokerage commissions, transaction
    fees and other related costs and expenses that are typically incurred by clients.

    Clients may also incur additional fees when account assets are invested in mutual funds, ETFs and
    other pooled investment vehicles. These vehicles charge internal management fees, which are
    disclosed in their respective offering documents. No portion of these fees offset the fees Aegon AM
    UK charges for its services.

    Client assets are maintained by independent custodians, and clients pay all custody fees directly to
    their custodian.

D   Advance payment of fees
    Aegon AM UK calculates invoices in arrears. No fees are paid in advance.

E   Compensation for the sale of securities or other investment products
    Aegon AM UK does not receive compensation for the sale of securities or investment products held
    within the underlying mandates we manage for our clients.

    Aegon AM UK aligns the interests of employees with those of clients via our long-term incentive
    performance plan. Part of our remuneration package includes eligibility for a discretionary bonus. Our
    sales team receive bonuses based on introducing new clients.

    Our remuneration package ensures that our investment professionals are focused on a range of Key
    Performance Indicators which align the interests of staff with our clients’ interests, incentivising us to
    continue to meet our client needs.

Item 7           Types of clients
Aegon AM UK manages assets on behalf of clients internationally, including public funds (e.g., US mutual
funds), collective investment trusts, financial institutions, endowments, foundations, wealth managers, wrap
programs, family offices and individuals. Aegon AM UK typically requires a minimum investment, which may
differ depending upon the particular investment strategy, product or client type. In the US, Aegon AM UK’s
currently manages assets for US mutual funds, pension plans, and offshore collateralized loan obligations
(CLOs) privately placed to institutional US investors.