Aetna Asset Advisors LLC

Item 5         Fees and Compensation

AAA's management fees for the UBS Funds are billed to and payable by UBS and, in one
instance, by the UBS Fund quarterly in arrears, subject to an end -of-year reconciliation,
and are not deducted from the UBS Funds’ accounts. AAA does not charge any fees to the
Separate Account; however, its affiliate receives a management fee from the Account’s
participants. Because AAA’s clients are all “qualified purchasers” within the meaning of

  For these purposes, "short-term investments" means publicly-traded fixed-income
assets having two years or less to maturity.

Section 2(a)(51) of the Investment Company Act of 1940, as amended, AAA has elected
not to provide information on its fees in this Brochure.

With respect to UBS Fund expenses, AAA has engaged the services of a market pricing
firm to provide pricing for the portions of the UBS Funds' portfolios for which AAA is a
sub-adviser. The cost of these services is borne by the UBS Funds, whose accounts at the
custodian are debited their pro-rata share monthly in arrears with the approval of UBS.
Details about additional expenses that the UBS Funds and their investors may incur are
disclosed in the offering and organizational documents provided to underlying investors in
the UBS Funds.

With respect to the Separate Account, AAA’s affiliate, ALIC, passes certain expenses, such
as auditing fees and investment expenses, through to the Separate Account participants
pursuant to its agreements with them.

Item 7          Types of Clients

AAA’s clients consist of the UBS Funds and the Separate Account. All of the Firm’s
clients meet the criteria for a “qualified purchaser” under Section 2(a)(51) of the
Investment Company Act.